XJ'^i 


V 


'>.- 


'iS' 


;^i' 


A    il 


•T>>  \ 


/7a- 


:       U^^~-     ^ 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/dividendtolaborsOOgilmiala 


^p  l!)icl)0lag  p.  (Silman 


PROFIT  SHARING  BETWEEN  EMPLOYER 
AND  EMPLOYEE.  A  Study  in  the  Evolution 
of  the  Wages  System.  Fifth  Thousand.  Crown 
8vo,  $1.75. 

THE  LAWS  OF  DAILY  CONDUCT.  Third 
Thousand.     Crown  8vo,  $1.00. 

SOCIALISM  AND  THE  AMERICAN  SPIRIT. 
Second  Thousand.     Crown  8vo,  $1.50. 

A  DIVIDEND  TO  LABOR.     Crown  8vo,  JS1.7S. 

HOUGHTON,  MIFFLTN  &  COMPANY, 
Boston  and  New  York. 


A  DIVIDEND  TO  LABOR 

A    STUDY  OF  EMPLOYERS'    WELFARE 
INSTITUTIONS 

BY 

NICHOLAS  PAINE  OILMAN 


I  know  of  no  tn»st  more  sacred  than  that  given  into  the  hands  of  the 
captains  of  industry,  for  tliey  deal  with  human  beings  in  close  and  vital 
relations  —  not  through  the  medium  of  speech  or  of  exhortation,  but  of 
positive  association,  and  by  this  they  can  make  or  mar. 

Carroll  D.  Wright. 


BOSTON  AND  NEW  YORK 

HOUGHTON,  MIFFLIN  AND  COMPANY 

dbe  Ritoetisibe  preji*,  Cambribce 


^^^ 


COPYRIGHT,   1899,  ^Y  NICHOLAS   PAINE   OILMAN 
ALL   RIGHTS   RESERVED 


PKEFACE 

This  volume  has  a  scientific  and  a  practical  aim. 
Frequently,  since  the  publication  of  my  work  on  profit 
sharing  in  1889,  I  have  been  forcibly  made  aware 
of  the  difficulty  of  getting  reliable  information  con- 
cerning the  "  weMare-institutions  "  which  numerous 
employers  of  labor  maintain  for  their  employees.  A 
characteristic  note  of  most  of  these  arrangements  is 
that  the  liberal-minded  employer  making  them  stops 
short  of  plans  which  would  demand  a  change  in  the 
existing  wages  system.  Practically  they  result,  how- 
ever, in  an  "  indirect  dividend  to  labor,"  as  I  have 
called  it.  They  depend  for  their  existence  upon  real- 
ized profits,  made  in  the  usual  way,  and  appropriated 
in  part  by  the  employer  for  the  benefit  of  his  work- 
people, purely  at  his  own  discretion  and  usually  under 
no  agreement  with  the  employees.  Such  welfare- 
institutions  form  an  intermediate  stage  between  a 
wages  system  under  which  the  workman  receives  his 
agreed  wages  and  nothing  more,  directly  or  indirectly, 
and  a  profit-sharing  agreement  according  to  which  he 
would  receive,  directly  and  regularly,  a  certain  share 
of  the  profits  made  by  the  establishment. 

There  have  been  and  are,  in  this  nineteenth  cen- 
tury, employers   numerous  enough  to   be  worthy  of 


iv  PREFACE 

consideration  who  have  thus  informally  paid  a  virtual 
dividend  to  their  employees.  The  significance  of  this 
method  as  a  sign  of  a  possible  future  is  great.  But 
economic  literature  in  the  EngUsh  language,  so  far  as 
I  am  aware,  has  no  convenient  record  of  such  liber- 
alities. The  first  aim  of  this  volume  is,  therefore,  to 
supply  this  deficiency,  and  to  present  a  necessarily  in- 
complete view  of  welfare-institutions  in  Europe  and 
America.  For  Germany  I  have  relied  largely  on  the 
two  volumes  compiled  by  Dr.  J.  Post  (the  second  was 
pubhshed  in  1893),  supplemented  by  later  reports 
received  from  German  firms :  for  France  I  have  de- 
pended upon  Mons.  H.  Brice's  work,  upon  French 
profit-sharing  literature  (which  pays  much  attention 
to  these  institutions),  and  upon  direct  correspondence. 
In  both  these  countries  there  is  such  an  abundance 
of  instances  that  I  have  presented  only  a  number  of 
typical  cases  in  detail  and  have  briefly  summarized 
others  :  in  some  cases  I  have  had  to  be  content  with 
figures  given  in  1889.  In  England,  on  the  other 
hand,  such  institutions  seem  to  be  comparatively  few. 
For  the  United  States  I  have  described  in  varying  de- 
tail a  considerable  number  of  cases,  most  of  which  I 
have  personally  investigated.  In  this  country  there 
are  certainly,  and  in  England  there  are  probably, 
numerous  instances  of  liberal  employers  of  whom  I 
have  no  information.  From  the  nature  of  the  case 
such  a  record  as  this  must  be  incomplete ;  the  main 
matter  is  that  it  shall  include  a  good  variety  of  plans 


PREFACE  r 

that  have  been  tried  in  different  lines  of  industry.  It 
has  seemed  well  worth  while,  from  the  standpoint  of 
knowledge  simply,  to  bring  together  the  body  of  sifted 
facts  given  in  Part  II.  for  the  information  of  all 
persons  interested  in  the  study  of  labor  questions.  I 
shall  welcome  news  of  cases  now  unknown  to  me. 

My  practical  aim  has  been  to  present  these  facts, 
which  appear  to  exhibit  a  finer  conception  of  the  em- 
ployer's function  than  is  commonly  held,  in  such  a 
way  as  to  incite  other  intelligent  and  successful  em- 
ployers of  labor  to  go  and  do  likewise.  It  has  been 
especially  difficult  for  such  an  employer,  with  the  best 
intentions,  to  learn  much  of  what  others  have  done  on 
the  lines  of  far-sighted  policy  and  practical  philan- 
thropy which  are  my  subject. 

I  have  thought  that  the  facts  given  in  Part  II. 
would  be  shown  more  satisfactorily,  if  they  were  pre- 
faced by  the  matter  contained  in  Part  I.  on  the 
modern  employer.  I  here  hold  that  an  essential 
matter  in  the  labor  world  is  that  both  the  buyer  and 
the  seller  of  labor  shall  realize  the  moral  aspects  of 
their  relation  —  in  other  words,  that  the  labor  con- 
tract shall  be  moralized.  This  is  as  true  of  the  work- 
ingman  as  of  the  other  party  to  the  contract ;  but,  as 
this  volume  is  concerned  with  the  latter,  I  allude  to 
the  former  incidentally  only,  and  go  on  to  present  a 
realizable  ideal,  such  as  a  sober  and  candid  imagi- 
nation might  construct.  That  no  excessive  demands 
are  made  on  actual  employers  by  such  an  ideal  will 


vi  PREFA  CE 

appear  from  the  account  which  follows  of  Robert 
Owen,  the  man  who  made  this  ideal  a  matter  of  fact 
three  generations  ago. 

In  Part  III.,  under  the  heading  "  A  Direct  Divi- 
dend to  Labor,"  I  have  supplemented  my  treatise  on 
profit  sharing  (which  it  has  not  seemed  feasible  to 
revise)  with  such  later  information  as  the  lapse  of  ten 
years  renders  desirable.  With  the  appendixes  Nos. 
II.  and  III.,  this  part  may  serve  to  set  forth  the  later 
history  of  the  system. 

To  the  many  business  firms  and  corporations  at 
home  and  abroad  with  whom  I  have  corresponded,  or 
whose  establishments  I  have  visited,  while  preparing 
this  work,  my  sincere  and  hearty  thanks  are  due  for 
their  unwearied  courtesy.  As  I  write  these  closing 
lines,  I  am  also  mindful  of  two  great  publicists,  too 
soon  departed,  to  whom  I  owe  much  of  light  and 
leading,  and  whose  labors  in  the  cause  of  industrial 
peace  this  volume  would  fain  help  to  continue  in  some 
degree  —  Francis  A.  Walker  of  Boston,  and  Charles 
Robert  of  Paris. 

Whether  the  dividend  to  labor  which  the  economist 
approves  and  the  employer  establishes  be  direct  or 
indirect,  I  trust  that  this  book  may  serve  to  increase 
that  deeper  consciousness  of  kind,  that  more  truly 
human  sympathy  between  employers  and  employed, 
of  which  such  a  dividend  can  be  but  an  imperfect 
expression. 

N.  P.  G. 

Mbadviixb,  Pennsylvania,  September  16,  1899. 


CONTENTS 

PART   I. 

THE   MODERN    EMPLOYER. 
CHAPTER  I. 

FAOB 

An  Essentiai<  Matteb 1 

CHAPTER  11. 
A  Realizable  Ideal 18 

CHAPTER  III. 
Robeut  Owen  the  Manufacturek 30 

PART  II. 

AN   INDIRECT   DIVIDEND   TO   LABOR. 

CHAPTER  rV. 
Welfare-Institutions  in  Germany 63 

CHAPTER  V. 
Patronal  Institutions  in  France 121 

CHAPTER  VI. 
Patbonage  in  Holland  and  Belgium        ....    161 

CHAPTER  Vn. 
British  Employers'  Institutions 177 

CHAPTER  VIII. 
American  Liberality  to  Workmen 206 


viii  CONTENTS 

PAKT  III. 

A   DIBECT   DIVIDEND   TO   LABOR. 

CHAPTER  rX. 
Five  Cases  of  Pkofit  Shaking 296 

1.  The  Maison  Baille-Lemaire. 

2.  The  Bourne  MUls. 

3.  The  Procter  and  Gamble  Company. 

4.  The  South  Metropolitan  Gas  Company. 

5.  The  N.  O.  Nelson  Company. 

CHAPTER  X. 
Pbopit  Shabikg  To-Day 334 

CHAPTER  XL 
The  Reasonable  Wat 352 


Appendix     I.  Some  Dangers  of  Paternalism     ....  362 

Appendix    II.  List  of  Profit-Sharing  Firms       ....  366 

Appendix  III.  Cases  of  Abandonment  of  Profit  Sharing    .        .  380 

Appendix  IV.  Bibliography 389 

Index 393 


A  DIVIDEND  TO  LABOR 


PART  I 

THE  MODERN  EMPLOYER 
CHAPTER   I 

AN    ESSENTIAL    MATTER 

The  great  Duke  of  Wellington  is  reported  to  have 
lamented,  on  a  certain  occasion,  that  he  was  "  much 
exposed  to  authors."  The  employer  of  labor  at  the 
present  day  might  complain  that  he  is  much  exposed 
to  philanthropists.  The  number  of  persons,  quite  in- 
expert in  practical  affairs,  who  are  ready  to  tell  him 
the  only  just  way  of  managing  his  business,  so  far  as 
concerns  his  employees,  is  not  small.  They  are  often 
forward  to  accuse  him  of  being  the  chief  reason  for 
the  existing  imrest  and  confusion  in  the  world  of 
industry.  They  sometimes  charge  him  with  hardness 
of  heart  because  of  his  unwiUingness  to  advance  wages 
beyond  the  market  rate,  or  to  lessen  the  hours  of 
labor  in  his  factory,  wliile  his  competitors  are  keeping 
to  the  usual  working  day.  They  deplore  his  lack  of 
intellectual  vision,  in  that  he  does  not  foresee,  as  they 
do,  the  near  abohtion  of  his  entire  class  in  the  down- 
fall of  the  competitive  regime  and  the  advent  of 
cooperative  man  or  the  socialistic  state. 


2  A  DIVIDEND  TO  LABOR 

The  disreg-ard  of  some  obvious  facts  which  charac- 
terizes  much  of  this  advice  or  objurgation  is  plain  to 
the  ordinary  employer  of  labor,  upon  whom  there  hes 
the  executive  care  of  a  considerable  business.  He  is 
but  too  well  aware,  in  very  many  cases,  that  it  requires 
all  his  skill  to  keep  his  head  above  water,  wliile  pay- 
ing the  same  rate  of  wages  as  his  more  successful 
competitors,  and  obtaining  the  same  number  of  hours 
of  work  from  his  men.  When  he  is  reminded  of  the 
miUionaires  in  his  own  industry  who  have  erected 
hospitals,  free  libraries,  or  model  villages,  he  can  often 
allege  truly  that  he  has  himself  been  a  very  practical 
philanthropist,  in  keeping  his  force  as  steadily  em- 
ployed as  possible  for  years,  despite  the  variations  of 
trade.  He  may  claim  that  he  has  not  yet  received  a 
due  compensation  for  his  arduous  labor  of  superintend- 
ence. As  for  general  cooperative  production  by  the 
workingmen,  acting  as  their  own  employers,  he  thinks 
that  he  cannot  justly  be  considered  a  barrier  in  their 
way :  it  is  freely  open  to  them,  so  far  as  he  is  con- 
cerned. As  for  sociahsm,  he  does  not  consider  it  a 
practical  question  for  this  generation. 

No  conviction,  again,  is  more  deeply  rooted  in  the 
mind  of  the  ordinary  man  of  affairs  than  that  of  the 
inadvisabihty  of  confusing  philanthropy  and  business. 
"  Mixing  things  that  differ  is  the  Great  Bad,"  as 
Mrs.  Carlyle  said.  Let  business  be  conducted,  then, 
on  sound  business  principles,  says  the  man  of  affairs : 
let  philanthropy  do  its  saving  office  after  the  business 
is  firmly  established  and  yields  large  returns  :  but  let 
such  salvation  not  interfere  with  the  common-sense 
methods  of  the  active  world. 

In  this  volume  I  do  not  pose  as  the  advocate  of  the 


AN  ESSENTIAL  MATTER  3 

workingman.  For  the  great  body  of  competent  and 
successful  employers  of  labor  I  entertain  a  sincere 
respect,  according  to  their  sohd  abihty  in  the  conduct 
of  affairs.  I  have  a  profound  conviction  that  a  true 
and  natural  aristocracyj —  the  leadership  of  the  com- 
petent—  is  to  endure_Jn^^e-JndustrM  world,  as 
elsewhere,  for  an -indeJBnite_jtime.^  Progress  toward 
cooperative  production  is  slow,  though  not  so  slow 
now  as  formerly,  and  a  sociahstic  state  is,  to  say  the 
least,  stUl  below  the  horizon  of  "  practical  poKtics." 
I  have  no  difficulty  in  believing  in  the  fundamental 
rationality  of  the  men  who  employ  their  fellow-men  in 
large  or  small  enterprises  ;  I  do  not  doubt  their  pre- 
dominant desire  to  be  fair  and  just  in  their  dealings. 
Were  this  not  so,  the  pessimist  would  certainly  have 
a  much  firmer  and  more  extensive  foundation  for  his 
depressing  creed  than  the  reasons  which  he  generally 
gives. 

But  no  condition  of  mankind  is  perfect  altogether, 
and  no  body  of  men  has  yet  succeeded  in  monopoHzing 
wisdom.  The  function  of  the  entrepreneur,  or  em- 
ployer on  a  large  scale,  is  stiU  so  modern  that  it  has 
not  had  time  for  its  full  humanization  and  rationali- 
zation. Destined,  I  believe,  to  long  continuance 
among  articulate-speaking  men,  as  a  relation  both 
natural  and  reasonable,  the  employer's  office  should 
be  examined  from  every  side,  to  discover  all  its  excel- 
lences and  to  supply  aU  its  defects.  If  the  entre- 
preneur indeed  represents  the  brain  in  the  industrial 
body,  and  therefore  has  rightly  a  controlling  power,  he 
must  properly  recognize  that  one  of  the  chief  func- 

1  Mr.  W.  H.  Mallock  has  very  ably  treated  thia  matter  in  his  work 
on  Aristocracy  and  Evolution. 


4  A  DIVIDEND   TO  LABOR 

tions  of  the  mind  is  to  form  ideals  —  ideals  that  are 
desirable  and  realizable,  ideals  that  presuppose  con- 
science and  a  touch  of  imagination,  ideals  that 
demand  great  patience  in  our  slow  march  toward  the 
Better ;  never,  for  human  eyes,  shall  that  Better 
become  an  unyielding  and  impassable  Best ! 

An  ideal  in  regard  to  erecting  the  finest  mills, 
the  purchase  of  the  fittest  machinery,  the  making  of 
the  largest  and  best  product,  and  the  control  of  the 
widest  market  is  often  before  the  employer's  mental 
eye.  Let  him  remember,  then,  that  the  most  impor- 
tant part  of  the  whole  apparatus  of  production  is  the 
laboring  men,  the  "  living  machinery,"  as  Robert 
Owen  called  it,  of  a  factory.  There  is  an  ideal 
relation  possible  of  conception  between  the  manager 
or  owner  of  a  cotton-miU  and  those  men  who  work  in 
it.  This  ideal,  to  speak  broadly,  is  approached  in  a 
prosperous  factory  just  so  far  as  reason  and  good-will 
prevail  there. 

Before  inquiring  what  reason  and  good-wiU  demand, 
let  us  briefly  consider  the  general  function  of  the 
modern  employer  as  a  leader  in  the  industrial  world. 
Long  overlooked  by  the  economists  as  a  factor  dis- 
tinct from  the  possessor  of  capital,  he  has  had  ample 
justice  done  him  at  last  by  the  economists  of  the 
latter  half  of  this  century.  The  late  President  F.  A. 
Walker  especially  was  among  the  first  writers  in  our 
language  to  give  a  proper  account  of  his  peculiar 
function  —  a  function  quite  distinct  from  that  of  the 
man  who  has  inherited  a  fortune,  which  he  woidd  like 
to  use  in  capitalistic  production,  but  who  is  well  aware 
that  he  is  himself  destitute  of  the  commercial  and 
executive  ability  needed  to  insure  profit  in  business. 


^iV  ESSENTIAL  MATTER  5 

The  man  who  has  the  mental  ability  and  the  force 
of  character  requisite  for  the  conduct  of  industry  on 
a  large  scale,  under  the  trying  conditions  of  modem 
competition,  but  who  has  not  the  large  capital  needed, 
is  the  man  whom  the  capitalist  proper  seeks  and 
eagerly  embraces  when  found.  Here  is  the  one 
magician  who  can  call  up  profits  from  the  nether  deep 
by  his  potent  art.  The  two  functions,  of  providing 
money  and  of  furnishing  an  able  brain  and  a  master- 
ful character,  are  always  to  be  distinguished,  whether 
in  different  persons  or  in  the  same  person.  When 
the  man  of  innate  executive  power  and  great  acquired 
knowledge  has  also  become  a  capitalist  through  his 
deserved  prosperity,  he  unites  the  two  functions.  As 
a  capitalist  he  lends  money  to  himself  as  an  em- 
ployer; but  the  second  function  is  far  more  rarely 
exercised  prosperously  among  men  than  the  first. 

It  is  the  unique  task  of  the  employer  to  bring 
together  capital  and  labor  by  using  both  in  a  partner- 
ship which  only  executive  skiU  and  business  foresight 
can  make  profitable.  He  it  is  with  whom  the  work- 
man has  to  contend  or  to  unite.  No  mythological 
"  conflict  between  Capital  and  Labor  "  engages  the 
striker,  but  a  very  real  contest  between  himseK  and 
the  employer.  To  the  employer  the  workman  resorts 
in  order  to  procure  occupation  and  wages :  against 
the  employer  he  strikes  for  higher  wages  ;  or  with  the 
employer  he  produces,  in  a  friendly  union  of  indus- 
trial effort.  The  labor  problem  is,  substantially,  the 
question  of  obtaining  the  best  relations  between  labor 
and  management,  between  the  hand- worker,  more  or 
less  skillful  with  his  brain,  and  the  man  at  the  head  of 
the  concern,  whose  labor  is  chiefly,  if  not  wholly, 
mental. 


6  A   DIVIDEND   TO  LABOR 

However  mucli  I  shall  have  to  say  in  this  volume 
upon  the  moral  disposition  of  the  employer,  I  fuUy 
recognize  the  fact  that  the  first  thing  necessary  to 
the  weKare  of  the  workman  is  that  his  employer  shall 
be  a  man  of  intellectual  ability  and  general  force  of 
character  —  not  primarily  moral  force.  It  is  far  more 
important  for  the  workman  that  his  employer  shall  be 
financially  successful  than  that  he  shall  be  kind  or 
generous  in  his  dealings.  A  hard  employer,  who 
keeps  his  men  steadily  at  work  for  years,  on  the 
average  wage,  is  much  more  of  a  real  benefactor  to 
the  operative  than  a  genial  employer  whose  inex- 
perience or  lack  of  capacity  closes  the  factory  in  a 
few  months :  the  latter  will  have  the  sympathy  of 
his  employees,  but  he  is  not  their  best  friend.  The 
responsibilities  of  a  typical  great  entrepreneur  of  this 
century  are  many  and  varied,  and  they  call  loudly 
for  the  strong  man  in  the  manager's  chair.  The 
employer  often  selects  the  place  in  which  the  factory 
is  to  be  carried  on :  he  has  to  build  it  in  accordance 
with  the  latest  teachings  of  experience ;  he  has  to 
stock  it  with  approved  machinery ;  he  has  to  find 
capable  overseers  and  a  supply  of  competent  work- 
people ;  he  has  to  buy  the  raw  material,  to  decide 
upon  styles  and  patterns,  and  then  to  sell,  in  the  most 
favorable  market  he  can  find,  the  finished  product, 
due  to  all  this  remarkable  and  prolonged  concert  of 
various  abilities  in  the  whole  force.  He  is  the  one 
person  to  whom  the  chief  praise  for  success  is  rightly 
ascribed :  just  as  much  is  he  the  one  person  at  whose 
door  the  blame  of  failure  is  to  be  laid  —  whatever  its 
specific  cause,  he  is  properly  held  accoimtable  for 
allowing  that  specific  cause  to  work.     "  Captains  of 


AN  ESSENTIAL  MATTER  ■     7 

industry,"  who  have  chosen  their  Heutenants  and 
privates,  they  are  the  culprits  or  the  weaklings  to 
whom  failure  is  due,  if  failure  there  be:  and,  if 
success  arrives :  — 

"  Brightest  is  their  glory's  sheen, 
For  greatest  hath  their  labor  been." 

Mr.  Mallock  has  not  overrated  the  importance  to 
modern  civilization  of  the  strong  brain  and  the  force- 
ful character  of  the  successfid  employer.^  He  deserves 
to  lead,  since  he  is  indispensable  to  the  welfare  of 
those  allied  with  him,  the  capitalist  and  the  workman 
alike.  The  incompetent  employer,  as  President 
Walker  declared,  is  the  worst  enemy  of  the  working- 
man,  for  he  soon  leaves  him  unemployed.  A  success- 
ful manager,  on  the  other  hand,  who  feels  no  particu- 
lar sympathy  with  his  operatives  in  their  toilsome  life, 
but  does  keep  them  in  work,  year  in  and  year  out, 
stands  between  them  and  starvation  like  a  wall. 
Power  and  success  in  the  entrepreneur  are  the  surest 
ground  for  the  employee's  confidence  in  the  future.  A 
fine  morality,  in  the  sense  of  sympathy  or  kindness 
or  generosity,  on  the  employer's  part,  is  a  secondary 
matter,  however  important,  just  as  in  deeds  of  war  the 
morality  of  a  Napoleon  or  a  Moltke  is  not  primary. 
But,  assuming  the  existence  in  him  of  aU  the  abilities 
required  for  the  prosperous  working  of  a  great  indus- 

1  "  Capitalism,  in  its  essence,  is  merely  the  realized  process  of  the 
more  efficient  members  of  the  human  race  controlling  and  guiding  the 
less  efficient ;  capitalistic  competition  is  the  means  by  which,  out  of 
these  more  efficient  members,  society  itself  sel#3ts  those  who  serve  it 
best ;  and  no  society  which  intends  to  remain  civilized,  and  is  not  pre- 
pared to  return  to  the  direct  coercion  of  slavery,  can  escape  from 
competition  and  the  wage  system,  under  some  form  or  other,  any 
more  than  it  can  stand  in  its  own  shadow." 


8  A  DIVIDEND   TO  LABOR 

trial  establishment,  then  good-will  to  men,  sympathy 
with  one's  kind  and  the  hmnan  touch  are  happy  and 
fortunate  and  admirable  additions  to  the  vigor  of 
mind  and  the  power  of  will  which  have  taken  a  bond 
of  fate.  It  will  be  another  proof  of  strength  in  the 
strong  employer  if  he  seek  and  gain  all  the  moral 
advantage  possible,  and  cement  a  kindly  alliance  with 
his  nearest  feUow-men,  building  up  the  special  and  the 
general  welfare  in  firm  union.  Morality,  no  substi- 
tute for  intellectual  ability  and  force  of  will  in  busi- 
ness, is  a  very  noble  companion  to  them. 

But,  when  we  take  a  large  historic  and  philosophic 
view  of  the  progressive  civilization  of  mankind,  we 
cannot  fail  to  be  struck  by  the  slowness  with  which 
new  forms  of  human  relationship  are  moralized.  An 
original  and  inventive  man  makes  a  successful  stroke 
in  trade  or  industry.  Others  eagerly  imitate  him. 
It  is  a  long  time  before  the  ethical  relations  of  the 
new  method  are  considered,  or  the  point  is  even  raised 
whether  it  has  any  ethical  relations.  Nothing  suc- 
ceeding like  success,  in  a  world  where  imitation  is 
a  primal  power,  the  first  thought  of  the  natural  man 
is  that  the  end  justifies  the  means,  unless  these  are 
abhorrent  to  the  conunon  conscience.  After  the  new 
method  has  long  been  in  operation  to  the  profit  of 
many  individuals,  they  easily  reject  the  moral  test. 
They  hold  it  impertinent  in  moral  sticklers  to  thrust 
their  delicate  scruples  upon  those  who  are  simply 
doing  as  others  do  in  a  particular  business.  But 
neither  the  earher  nor  the  later  position  can  be  justi- 
fied before  the  bar  of  reason.  The  first  man  to  find 
the  new  way  pays  no  attention  to  the  morality  of  it, 
being  absorbed  in  satisfaction  with  the  happy  result 


AN  ESSENTIAL  MATTER  9 

to  his  own  fortunes ;  of  course,  this  indifference  can- 
not be  permanently  maintained.  Those  who  follow 
him  must  recognize  implicitly,  at  least,  the  propriety 
of  applying  the  moral  test.  If  they  are  doing  what 
others  are  also  doing,  it  can  no  longer  be  considered  a 
private  matter.  It  certainly  has  become  a  matter  for 
moral  judgment,  if  moral  judgment  has  for  its  proper 
subject  the  actions  of  social  man. 

Let  us  apply  this  ancient  truth  to  a  modern  in- 
stance. The  first  Enghsh  manufacturer  who  bar- 
gained with  the  poor-law  guardians  of  a  parish  ^  for 
a  supply  of  children  for  his  cotton-mill,  might  have 
claimed  that  this  was  a  personal  affair  between  him- 
self and  the  guardians.  They  contracted  with  him 
legitimately,  according  to  the  rights  of  freemen.  He 
might  well  say  that  he  would  himself  attend  to  the 
children  properly  thereafter.  He  might  have  heard 
with  virtuous  indignation  any  insinuation  that  he 
would  probably  overwork  and  underfeed  these  or- 
phans of  tender  years,  for  the  increase  of  his  profits. 
Suppose  that  a  moralist  of  the  time  had  had  a  clear 
foresight  of  the  actual  consequences  of  such  "  free 
contract "  to  these  orphans,  who  certainly  were  not 
"free"  themselves.  Suppose  that  he  called  at  once 
for  the  intervention  of  the  government.  He  would 
certainly  have  found  but  scant  recognition  of  his  good 
sense  in  the  House  of  Commons.  The  new  practice 
had  to  spread  and  become  common,  and  its  natural 
injurious  results,  in  such  hands,  become  obvious  to  all 
who  had  eyes  willing  to  see,  before  the  law  could  ad- 
visably interfere.  It  had  to  become  an  immoral  insti- 
tution before  it  could  be  moralized ;  in  other  words, 
1  In  the  latter  part  of  the  eighteenth  century. 


10  A  DIVIDEND  TO  LABOR 

it  was  obliged  to  have  a  natural  history  before  it  could 
have  a  moral  history.  The  greed  of  the  inteUectuaUy 
haK-trained  and  morally  low-toned  manufacturers  of 
the  early  part  of  the  factory  period  ^  produced  atro- 
cious results  in  heartless  treatment  of  the  miU  chil- 
dren ;  the  story  is  familiar  to  all  acquainted  with  the 
rise  of  modern  industry.^  Then,  and  not  till  then,  the 
need  of  moralizing  this  new  but  neglected  institution 
became  manifest.  It  was  then  plain  to  see  that  the 
State  was  the  most  effective  agency  to  meet  the  cry- 
ing need.  Here,  again,  was  the  old,  old  story,  —  a 
new  and  evident  power  4isclaimed  responsibility,  and 
proceeded,  by  a  fatal  evolution,  to  the  vices  and  evils 
that  always  accompany  such  a  disclaimer. 

If  the  employer  of  to-day  is  sometimes  impatient 
at  the  large  amount  of  "  preaching  "  which  he  thinks 
is  needlessly  directed  upon  himself,  he  may  do  well 
to  refresh  his  recollection  of  this  time  when  the  most 
elementary  moral  commandments  were  flagrantly  dis- 
regarded by  men  of  his  class,  —  the  English  manufac- 
turers of  1780-1830.  In  these  earlier  years  of  the 
factory  system,  the  duties  not  alone  of  justice  and 

1  Gaskell,  in  his  Manufacturing  Population  of  England,  as  quoted 
by  Dr.  G.  von  Schulze-Gaevernitz  (Zmwi  Socialen  Frieden,  vol  i.  p.  24), 
tells  us  that  the  textile  employers  of  the  industrial-revolutionary 
period  were  almost  exclusively  former  workmen,  in  home  or  factory, 
who  had  risen  above  their  fellows  by  their  ability  and  energy.  Dr. 
Schulze-Gaevernitz  continues:  "The  first  generation  of  employers 
.  .  .  belonged,  then,  to  the  uncultured  class.  They  are  pictured  as 
rude  and  brutal.  .  .  .  That  moderation  which  is  laid  upon  inherited 
wealth  by  family  tradition,  social  considerations  and  moral  ideas  was 
foreign  to  them  (p.  25).  .  .  .  Their  relation  to  the  workmen  was,  in 
fact,  a  purely  economic  one,  —  they  considered  them  not  as  men,  but 
as  means  of  accumulating  capital "  (p.  34). 

2  See  The  Modern  Factory  System,  by  R.  Whately  Cooke  Taylor, 
ch.  V. 


AN  ESSENTIAL  MATTER  11 

kindness,  but  even  of  ordinary  humanity,  as  we  to-day 
understand  it,  were  frequently  and  grossly  disobeyed, 
especially  in  the  treatment  of  women  and  children. 
"  In  no  place  and  in  no  time,"  says  Dr.  Schulze-Gae- 
vernitz  ("  Zum  Socialen  Frieden,"  vol.  i.  p.  40),  "  have 
Property  and  Culture  so  refused  their  duties  toward 
the  lower  classes,  as  did  the  Middle  Classes  of  the  Eng- 
lish people  in  the  first  decades  of  this  century."  Not 
only  the  many  appeals  of  Lord  Ashley  (afterward 
Lord  Shaftesbury)  from  the  House,  and  the  noble 
denunciation  of  abuses  by  the  man  of  letters  in  the 
person  of  Thomas  Carlyle,  but  also  the  much  earlier 
good  example  of  Robert  Owen,  the  ablest  cotton- 
spinner  of  his  generation,  were  long  fruitless. 

It  was  an  unfortunate  alliance  for  both  parties  that 
was  practically  made  between  the  manufacturers  and 
the  political  economists  of  this  period.  The  nar- 
rowness of  the  economists  in  declaring  against  state 
"  interference  "  with  the  divine  right  of  the  manufac- 
turer to  disregard  the  commonest  rules  of  humanity, 
if  he  chose,  in  dealing  with  children  in  the  mills,  has 
been  condemned  by  all  subsequent  writers  who  take 
a  true  view  of  the  demands  of  "national  welfare." 
But  the  large  Enghsh  employers  of  the  years  1780- 
1830  were  but  too  glad  of  such  "  scientific  "  support 
for  their  unbridled  greed.  A  second  half-century  has 
clearly  seen  that  the  manufacturer  -  philanthropist, 
Owen,  the  humane  Earl  Shaftesbury,  and  Carlyle,  the 
genius  of  letters,  were  in  the  right,  while  the  insidar 
economist  and  the  unideal  employer,  declining  to  apply 
the  test  of  sound  feehng  to  the  lot  of  the  workingman, 
were  altogether  wrong.  Carlyle,  indeed,  has  been  am- 
ply vindicated  as  a  prophet  of  humanity ;  howsoever 


12  A  DIVIDEND  TO  LABOR 

little  he  could  do  in  the  way  of  practical  guidance, 
his  prophetic  warning  against  the  inhuman  spirit  which 
held  the  "  cash  nexus  "  the  only  one  to  be  respected  by 
the  employer  has  been  thoroughly  justified. 

The  moral  education  of  the  world  is  slow,  but  it  is 
sure.  The  industrial  development  of  the  last  hun- 
dred years  has  happily  witnessed  an  increasing  empha- 
sis laid  by  pubhc  opinion,  ever  more  watchful  over  a 
wider  field,  on  the  moral  relations  of  the  employer  of 
labor  to  his  workpeople.  He  is  not  now  allowed  to 
build  factories  destitute  of  sanitary  appliances,  to  stock 
them  with  machinery  dangerous  to  the  operative  with- 
out liabiHty  in  case  of  accident,  or  to  work  women 
and  children  as  long  as  he  pleases.  For  the  "  rights  " 
which  the  narrow-minded  employer  is  pleased  to  claim, 
but  which  result  practically  in  serious  injury  to  work- 
ingmen  and  the  lessening  of  the  public  health  and 
wealth,  the  modern  State  has  no  regard.  If  enhght- 
ened  selfishness  or  the  motions  of  his  own  conscience 
will  not  lead  the  employer  to  do  for  his  employees 
what  public  opinion  has  come  to  recognize  as  ordinary 
justice,  he  will  be  externally  morahzed  by  the  force 
of  law ;  his  practice,  if  not  his  sentiments,  must  be 
made  to  conform  to  the  recognized  general  average 
of  morality. 

Very  obviously,  however,  no  institution  has  reached 
maturity  so  long  as  external  moralization  is  the  only 
ethical  experience  which  those  at  the  head  of  it  have 
undergone.  If  the  employer  fences  his  machinery 
and  works  his  force  only  the  legal  hours,  but  de- 
clares that  beyond  compliance  with  the  letter  of 
the  factory  laws,  and  the  punctual  payment  of  their 
wages,   he  owes   nothing   to  the   hundreds  of   men, 


AN  ESSENTIAL  MATTER  13 

women  and  children  in  his  employ,  then,  however 
moral  he  may  be  in  his  home  or  as  a  citizen,  he  has 
not  attained  a  true  inward  rightness  in  his  industrial 
relations.  He  has  not  realized  the  full  demands  of  a 
sound  morality,  which  has  no  conflict  with  economic 
truth  or  economic  law,  but  the  force  of  which  cannot 
be  excluded  from  any  relation  which  is  human. 

On  the  other  side,  if  a  workman  simply  works  hard 
enough  and  carefully  enough  to  retain  his  position  in 
a  factory :  if  he  feels  no  desire  that  his  employer  shall 
prosper  because  he  liimseK  does  his  best,  with  all  his 
fellows  :  if  he  simply  refrains  from  physical  violence 
during  a  strike  while  acting  most  unsocially  in  all 
other  respects  —  he,  too,  is  imperfectly  moralized,  so 
far  as  his  relations  to  the  employer  are  concerned. 
He,  too,  needs  an  ethical  development,  if  he  thinks 
that  the  whole  duty  of  industrial  man  is  thus  dis- 
charged by  him. 

The  simple  truth  is  that,  viewed  on  a  large  scale, 
the  function  of  the  modern  employer  has  not  yet  been 
sufficiently  moralized.  Much  of  the  strain  and  conflict 
now  seen  in  the  industrial  world  will  disappear,  in  all 
probability,  as  the  duty  of  the  employer  appears  to 
him  commensurate  with  his  real  power.  Surely  it  is 
a  great,  if  not  commanding,  influence  which  the  large 
mill-owner,  for  instance,  exercises  over  his  work- 
people. They  have  come  by  hundreds  from  all  quar- 
ters to  do  the  work  and  take  the  wages  that  he  had 
offered.  A  community  is  gathered  and  a  new  town, 
perhaps,  is  formed.  Year  after  year,  to  these  hun- 
dreds, or  even  thousands  of  workers,  their  work  is 
the  most  important  life-matter,  as  it  is  the  foundation 
of  all  other  matters.     That  the  man  who  controls  the 


14  A  DIVIDEND   TO  LABOR 

supply  of  this  work,  who  has  owned,  or  still  owns, 
the  ground  his  employees  tread  upon,  and  the  houses 
in  which  they  dwell  —  that  this  man  has  no  moral 
relations  toward  them  beyond  paying  wages  and  col- 
lecting rents,  that  he  is  not  called  upon  to  exercise  the 
potent  and  far-reaching  influence  upon  their  present 
and  their  future  which  he  might  by  taking  a  warm 
interest  in  them  as  human  beings  capable  of  education 
and  progress  —  this  is  a  position  betraying  a  curi- 
ously incomprehensive  idea  of  human  duty.  To  an 
instructed  and  impartial  mind  it  will  seem  the  most 
glaring  instance,  perhaps,  afforded  by  the  modern 
world  of  the  survival  of  tribal  morals  (employers 
being  regarded  as  one  tribe  and  workmen  as  another) 
and  of  the  superficiaUty  of  the  Christian  veneer  over 
a  too  substantial  selfishness  ! 

The  moralist,  the  philanthropist,  the  enlightened 
economist  and  the  well-balanced  reformer  of  our  gen- 
eration have,  indeed,  no  more  inviting  and  fruitful  task 
before  them  than  the  sagacious  application  of  ideal 
justice  and  righteousness  to  the  employer's  function. 
In  every  direction  the  ideal,  which  we  can  form,  if  we 
will,  of  a  human  relationship  best  determines  the 
actual  duties  and  defines  the  solemn  responsibihties 
of  the  connection.  If  a  man  refuse  to  entertain  the 
thought  of  an  ideal  of  the  relationship  which  he  sus- 
tains as  a  father  or  as  a  citizen,  he  is  so  far  unmoral, 
and  he  is  likely  to  be  a  poor  father  or  an  ineffective 
citizen.  And  if  men  gain  stimulus  and  inspiration  in 
their  families,  or  in  their  civic  duties,  by  considering 
an  ideal  of  what  they  might  do  and  be,  surely  this 
holds  as  true  in  the  industrial  sphere,  where  the  con- 
tact of  men  with  interests  apparently  so  diverse  is  so 
close,  incessant  and  fateful. 


AN  ESSENTIAL  MATTER  15 

The  ideal  presented  by  the  earnest  man  of  thought 
to  the  practical  man  of  business  should,  of  course, 
accord  with  the  plain  necessities  which  beset  that 
occupation.  The  ideal  should  be  distinctly  realiz- 
able by  men  who  are  neither  heroes  nor  saints  nor 
philanthropists :  they  might  weU  fail  in  business  if 
they  attempted  to  be  any  one  of  these !  The  ideal 
must  not  be  a  pattern  set  in  the  mount  to  which  those 
who  must  cultivate  the  common  levels  of  life  can  have 
no  inward  attraction.  It  must  be  in  close  touch  with 
reality,  make  no  cruel  demand  on  the  average  man, 
and  harmonize  with  the  laws  of  economic  success.  It 
must  tally  with  the  practice  of  the  best  men  in  differ- 
ent walks  of  business  —  those  who  stand  highest  in 
point  of  ability  and  character  before  the  world  at 
large.  It  must  not  be  an  ideal  which  requires  that 
the  individual  employer  shall  act  as  if  the  making  of 
his  living  were  a  minor  matter  with  him,  or  shall  con- 
duct his  business  according  to  an  economic  or  social 
system  profoundly  different  from  the  one  prevailing 
all  about  him.  It  must  be  an  ideal,  however,  which 
necessitates  the  "  human  touch  "  in  all  social  relation- 
ships, and  rejects  every  tendency  on  the  part  of  an 
employer  to  treat  the  men  whom  he  employs  as  if 
they  were  machines,  or  animals  of  another  and  lower 
species  than  himself. 

Beneath  all  other  causes  of  trouble  and  conflict  in 
the  labor  world,  making  them  seem  superficial  only,  is 
the  personal  ahenation  of  the  employer  from  his 
feUow-men  whom  he  engages  to  work  for  him  in  large 
numbers.  This  alienation  is  partly  due  to  the  great 
size  of  many  industrial  enterprises  and  the  consequent 
lack  of  personal  acquaintance  between  the  two  parties. 


16  A  DIVIDEND   TO  LABOR 

In  older  times,  when  the  master  worked  side  by  side 
with  his  men,  in  the  field  or  the  small  shop,  or  was  at 
least  familiarly  known  to  them,  the  acquaintanceship 
had  its  natural  result,  in  most  cases,  in  a  general 
sympathy  and  friendliness  which  greatly  facihtated 
production.  The  progress  of  invention,  the  immense 
development  of  industrial  organization  and  the  wide 
prevalence  of  corporate  methods  have  rendered  diffi- 
cult, if  not  impossible,  the  old  friendliness  based  on 
personal  knowledge.  But  a  substitute  is  not  impos- 
sible, which  shaU  manifest  the  interest  of  the  em- 
ployer in  those  who  work  for  him.  This  working  is, 
by  its  very  nature,  a  species  of  cooperation.  Obvi- 
ously, the  closer  the  cooperation  can  weU  be  made, 
the  better,  from  all  points  of  view.  There  is  need  of 
the  closest  union,  for  however  much  the  economic  iU 
efPects  of  large-scale  production  have  been  veiled, 
they  none  the  less  exist,  as  well  as  the  moral  loss. 

If  the  modem  employer  is  sincerely  interested  in 
the  general  welfare  of  the  many  persons  who  work 
for  him,  simply  because  they  are  human  beings  like 
himself,  and  because  he  realizes  that  he  stands  in  a 
relation  to  them  which  can  be  made  very  effective  for 
good  to  both  parties,  he  has  taken  a  long  stride  toward 
industrial  peace  in  his  house,  and  he  has  the  root  of 
the  ideal  in  him.  The  particular  forms  in  which  his 
good-wiU  shall  best  take  effect  are  a  matter  of  detail. 
The  spirit  which  is  the  main  matter  is  easily  recog- 
nized by  the  sensible  employee.  The  conscientious  em- 
ployer, recognizing  the  largeness  of  his  opportunity 
to  do  good,  in  proportion  to  his  prosperity,  will  see 
that  the  heathen  for  whom  he  should  contribute  are 
often  those  at  his  own  door,  in  the  shape  of  men  and 


AN  ESSENTIAL  MATTER  17 

women  in  his  employ  who  are  poor,  ignorant  and 
possibly  vicious  —  but  still  his  feUow-men.  He  is 
probably  in  a  position  to  do  more  for  them  than  any 
other  person  can.^ 

An  employer  is  moralized  who  fully  perceives  the 
uniqueness  of  his  opportimity  and  girds  himseK  to 
the  great  responsibilities  of  his  position.  As  I  have 
said,  it  will  be  a  matter  for  careful  inquiry  and  sober 
discrimination  to  select  the  practical  measures  which 
he  shall  take  to  manifest  his  kindly  thought.  He  will 
need  to  consult  all  available  experience  to  learn  what 
others  have  done  that  will  reward  his  imitation :  he 
may  need  to  go  very  slowly  in  adopting  methods  and 
building  up  institutions  which  shall  tend  to  embody 
his  ideal  of  justice  and  kindly  feeling.  But  great  is 
his  gain  from  the  very  beginning  of  such  beneficence, 
in  his  larger  and  stronger  hold  upon  things  as  they 
are  in  the  world  of  man,  when  he  confesses  his  pecul- 
iar responsibility  and  manfuUy  sets  himself  to  dis- 
charge it. 

^  "  I  assure  you  that  the  weal  or  the  woe  of  the  operative  popu- 
lation everywhere  depends  largely  upon  the  temper  in  which  the 
employers  carry  the  responsibility  intrusted  to  them.  I  know  of  no 
trust  more  sacred  than  that  given  into  the  hands  of  the  captains  of 
industry :  for  they  deal  with  human  beings  in  close  relations,  —  not 
through  the  media  of  speech  or  exhortation,  but  of  positive  associa- 
tion, —  and  by  this  they  can  make  or  mar.  The  rich  and  powerful 
manufacturer,  with  the  adjuncts  of  education  and  good  business 
training,  holds  in  his  hand  something  more  than  the  means  of  sub- 
sistence for  those  he  employs.  He  holds  their  moral  well-being  in 
his  keeping,  in  so  far  as  it  is  in  his  power  to  mould  their  morals. 
He  is  something  more  than  a  producer :  he  is  an  instrument  of  God 
for  the  upbuilding  of  the  race."  (Carroll  D.  Wright,  U.  S.  Commis- 
sioner of  Labor.) 


CHAPTER  II 

A   REALIZABLE   IDEAL 

In  dealing  with  any  question  it  is  true,  and  espe- 
cially is  it  true  in  dealing  with  the  "  labor  question," 
that  a  one-sided  solution  is  no  solution  at  all,  as  Pro- 
fessor Gonner  has  said.  Solutions  in  abundance  have 
been  advanced  by  those  who  take  the  side  of  the 
workingman  in  a  partisan  spirit.  On  the  other  hand, 
the  modern  employer  has  the  usual  facility  of  human- 
kind in  recognizing  other  men's  duties.  He  clearly 
sees,  for  instance,  that  the  trade-unions  have  responsi- 
bilities to  the  employer  and  to  the  public  which  they 
cannot  properly  evade,  as  well  as  enormous  powers  to 
do  harm,  of  which  they  are  fully  conscious.  But  tu 
quoque!  The  brain  that  must  contrive  what  many 
hands  are  to  accomplish  in  modem  industry  needs 
also  to  be  moralized  in  its  dealings  with  those  indis- 
pensable "  hands,"  as  well  as  to  be  congratulated  on 
its  great  powers  and  its  splendid  achievements.^ 

The  modern  employer  should  do  his  part  in  the 
settlement  of  labor  problems :   he  should  contribute 

^  As  the  Bishop  of  London  declared  at  the  Cooperative  Congress  in 
1898 :  "  The  adaptation  of  old  conditions  to  the  needs  of  the  great 
modem  industrial  system  was  hastily  wrought,  under  stress  of  pres- 
sure which  did  not  allow  of  a  complete  survey  of  all  necessary  facts. 
The  man  was  hastUy  converted  into  the  '  hand,'  and  the  conditions 
of  his  humanity,  which  had  never  been  absent  from  consideration 
before,  were  suddenly  left  out  of  calculation.  .  .  .  The  '  hand  '  must 
again  be  converted  into  the  man,  on  the  broader  basis  which  the  de- 
velopment of  common  life  demands." 


A  REALIZABLE  IDEAL  19 

much  more  than  silence  or  purely  negative  criticism 
to  the  discussion,  if  he  would  retain  the  respect  of 
the  public:  he  should  offer  positive  suggestions  and 
himself  show  realized  reforms  in  various  lines  of  pro- 
duction, if  he  wishes  his  criticism  of  others'  reform 
projects  to  be  heeded.  Most  of  all,  his  attitude 
should  be  plainly  moral,  rational  and  conciliatory, 
and  his  spirit  be  one  of  sympathy  with  the  honorable 
aspirations  of  the  workingman.  The  majority,  prob- 
ably, of  American  employers  have  themselves  been 
workmen,  and  they  need  only  recall  their  own  thoughts 
and  feelings,  when  in  that  condition,  to  do  justice  to 
their  less  fortunate  or  less  capable  brethren.  What 
would  such  an  employer  do,  what  could  he  do,  to 
solve  labor  questions  in  his  own  business  ?  In  answer, 
I  will  now  briefly  outline  a  rational  and  realizable 
ideal,  an  ideal  based  entirely  upon  foundations  in  ex- 
perience and  built  up  of  material  from  the  same 
source.  Every  feature  of  it,  as  the  reader  will  see 
from  the  following  chapters,  is  taken  from  successful 
reality.  For  there  is  to-day  a  considerable  body  of 
employers  of  labor  who  have  fully  recognized  their 
moral  function.  It  is  their  ideas  and  their  work  that 
this  volume  represents.  It  is  with  their  answer  to 
the  claims  of  reason  and  good-will  upon  the  employer 
that  we  are  concerned. 

In  the  first  place,  it  may  not  be  too  late  in  the  day 
to  say  that  the  model  employer  frankly  accepts  the 
principle  of  factory  legislation  as  reasonable,  and  the 
labor  laws  themselves  as  desirable  and  necessary. 
Such  legislation  is  desirable,  since  the  health  and 
strength  of  the  working  population — their  physical 
capital — should  at  least  be  maintained  undiminished 


20  A  DIVIDEND   TO  LABOR 

from  generation  to  generation,  if  the  nation  is  to  hold 
its  place  in  the  world-conflict,  and  if  it  is  to  have  true 
internal  welfare.  It  is  reasonable  to  use  this  means 
to  the  desired  end,  since  the  end  is  the  common  weal, 
reached  most  naturally  by  state-craft.  Labor  laws 
are  necessary,  experience  shows,  in  order  to  protect 
the  comparatively  unprotected  workpeople  against 
those  who  have  a  great  advantage  of  position ;  these 
laws  will  assist  the  more  humane  employers,  also, 
against  unfair  competition  from  the  unscrupulous, 
who  would  exploit  women  and  children,  for  instance, 
by  demanding  of  them  exorbitant  hours  of  work. 
The  enlightened  employer  will,  therefore,  welcome  the 
expression  of  the  impartial  national  will ;  the  social 
conscience  has  both  the  right  and  the  duty  to  guard 
the  national  welfare  from  generation  to  generation, 
seeing  that  the  commonwealth  take  no  harm,  and  for- 
bidding any  class  of  citizens  to  overwork  and  devi- 
talize any  other  class  for  its  profit.  If  thoroughly 
enlightened  and  far-sighted,  the  employer  wiU  regard 
the  stipulations  of  well-considered  law  concerning  the 
construction,  heating,  lighting  and  ventilating  of 
shops  and  factories  as  the  minimmn  of  his  duty:  the 
maximum  will  be  compliance,  as  he  is  able,  with  the 
fullest  demands  of  reason  and  humanity,  by  making 
every  sanitary  and  protective  arrangement  for  his 
workpeople  that  prudence  and  science  suggest.  There 
may  well  be  details  of  factory  laws,  or  whole  laws 
even,  which  are  positively  unjust  to  the  employer, 
being  due  to  the  zeal  of  demagogues,  chiefly  intent  on 
capturing  "  the  labor  vote."  But  the  most  effective 
criticism  of  such  partiality  will  surely  come  from 
those  employers  who  have  fully  recognized  the  sound- 


A  REALIZABLE  IDEAL  21 

ness  of  the  principle  of  factory  legislation  and  have 
shown  a  large  willingness  to  comply  with  its  just 
demands. 

The  attitude  of  the  employer  toward  trade-unions 
should  be  one  of  frank  appreciation  of  the  great  good 
that  they  have  done,  and  are  doing.  Some  of  the 
most  progressive  manufacturers  of  our  day  have  de- 
clared their  preference  for  dealing  with  the  authorities 
of  trade-unions,  rather  than  with  the  men  separately. 
Not  a  few,  like  Mr.  George  Thomson  of  Hudders- 
field,  and  Mr.  N.  O.  Nelson  of  St.  Louis,  positively 
encourage  their  employees  to  join  a  union.  The 
Union,  like  the  Trust,  is  plainly  an  enduring  element 
of  the  modern  industrial  situation.  It  should  become 
an  incorporated  body,  with  power  to  sue  and  be  sued, 
and  thus  level  up  its  responsibilities  to  its  powers. 
In  the  mean  time,  wise  men  will  adjust  themselves  to 
it,  and  make  the  best  of  it,  instead  of  fighting  the 
inevitable.  They  will  not  be  the  first  to  resist  every 
demand  of  the  laboring  man  simply  because  it  comes 
from  a  union,  or  the  last  to  concede  a  courteous  and 
patient  discussion  of  labor  difficulties  before  disinter- 
ested parties. 

"  Compulsory  Arbitration,"  indeed,  is  a  misnomer 
and  a  contradiction  in  terms,  if  the  employer  or  the 
workman  is  to  be  compelled  by  law  to  accept  the  offer 
of  arbitration  from  State  authorities,  and  to  abide  by 
the  results.  But  the  better  compulsion  of  reason  wiU 
lead  the  employer  to  establish  in  his  works  a  commit- 
tee of  conciliation,  which  may  amicably  settle  small 
troubles  before  they  become  great  feuds :  he  will  also 
be  willing  to  let  impartial  arbitrators  decide  the 
greater  matters,  if  he  is  not  asked  to  make  concessions 


22  A  DIVIDEND   TO  LABOR 

simply  fatal  to  Ms  just  authority.  The  methods  of 
practicable  arbitration  are  simple  and  easily  mastered : 
and  in  a  number  of  American  commonwealths  the 
State  Boards  of  Arbitration  deserve  high  praise  for 
the  judicial  manner  in  which  they  have  discharged 
their  peaceful  office.^ 

The  ideal  employer,  following  the  example  of  many 
actual  employers,  wiU  feel  and  show  a  kindly  interest 
in  the  weKare  of  the  men  who  are  joint  workers  with 
the  counting-room  and  the  firm  in  the  total  industry. 
He  will  take  an  active  part  in  encouraging  thrift,  for 
example,  after  the  manner  of  such  corporations  as  the 
Chicago  Electric  Car  Company  (on  the  South  Side), 
which  receives  deposits  and  does  the  necessary  book- 
keeping for  its  employees'  benefit  association  without 
charge.  Other  firms,  such  as  the  Carnegie  Steel 
Company  of  Pittsburg,  pay  a  high  rate  of  interest  on 
savings  from  the  men ;  this  rate  is  now  half  as  large 
again  as  that  paid  by  the  savings-banks. 

The  progressive  employer  will  make  it  easy  for  his 
workmen  to  acquire  shares  in  the  stock  of  his  corj)0- 
ration  (if  his  business  is  so  organized).  The  share- 
holder-workman is  a  most  desirable  link  between 
capital  and  labor,  partaking  of  the  interests  of  both. 
Some  States  (like  Massachusetts)  have  smoothed  the 
way  for  corporations  to  issue  "  workman's  stock," 
under  favorable  conditions.  But  the  example  of  the 
Columbus  (Ohio)  Gas  Works  and  the  Illinois  Cen- 
tral Railway  shows  how  easy  and  how  advisable  it  is 

^  Mrs.  Josephine  Shaw  Lowell  has  compiled  the  most  important 
literature  on  this  subject  in  her  small  volume,  Industrial  Arbitration 
and  Conciliation.  The  annual  reports  of  the  Massachusetts  Board 
have  especial  value. 


A  REALIZABLE  IDEAL  23 

for  employers  to  offer  such  facilities  apart  from  legis- 
lation. 

The  employer  is  usually  a  man  fond  of  the  home 
which  he  owns.  He  should  be  quick  to  recognize 
that  the  workingnian  is  made  of  the  same  stuff  of 
thought  and  feeling  as  himself,  on  the  broad  lines  of 
human  desire.  In  no  other  way  can  he  more  wisely 
help  his  employees  than  by  assisting  them  in  this 
particular  direction.  Some  firms  build  and  rent  at- 
tractive houses  at  low  rates :  such  are  S.  D.  Warren 
and  Company,  the  paper  manufacturers  of  Cumber- 
land MiUs,  Me.,  the  Thread  Company  at  Willimantic, 
Conn.,  and  the  Howland  MiUs  at  New  Bedford,  Mass., 
to  name  but  three  American  instances.  The  so-called 
"  labor  advocate  "  sometimes  makes  an  egregious  blun- 
der in  objecting  to  the  workman's  becoming  the  owner 
of  his  home.  The  thought  is  that  he  should  be  a 
soldier  in  a  perpetual  war  against  "  capital,"  and 
should  incumber  himself  as  little  as  may  be  in  his 
possible  marches,  because  of  strikes  or  lock-outs,  from 
one  factory-town  to  another.  How  biased  and  par- 
tial a  view  this  is  —  biased  by  an  irrational  notion  of 
conflict  as  the  normal  condition  of  the  workingman, 
and  partial  in  its  conception  of  him  as  simply  an 
operative  and  not  at  aU  as  a  citizen  —  must  become 
evident  on  brief  consideration.  Such  sophistry  of 
class-jealousy  readily  yields,  however,  to  the  deep 
home-loving  instinct  of  the  natural  man,  especially 
the  Anglo-Saxon  man.  Employers  like  the  Cheneys 
at  South  Manchester,  Conn.,  N.  O.  Nelson  at  Leclaire, 
lU.,  and  many  others  in  Europe  and  America,  gratify 
this  desire  to  the  full  by  selling  lots  and  houses  on 
favorable  terms  to  their  employees,  in  their  admirable 


24  A  DIVIDEND   TO  LABOR 

villages.  Benefit  funds,  again,  and  life-insurance  and 
pension  plans  for  the  assistance  of  workpeople  in  the 
trying  periods  of  life  find  aid  and  encouragement  from 
prosperous  and  sagacious  employers.  Several  great 
railroads  of  this  country  (the  Baltimore  and  Ohio, 
the  Pennsylvania,  and  the  Chicago,  Burlington  and 
Quincy,  for  instance),  as  well  as  many  in  Europe, 
exhibit  on  a  large  scale  this  method  of  corporate  in- 
terest in  the  future  of  their  men.  Mr.  Alfred  Dolge 
was,  for  a  number  of  years,  the  foremost  single  em- 
ployer in  the  United  States  to  develop  a  pension  and 
insurance  system  in  his  felt  works  at  Dolgeville,  N.  Y. 
His  failure  in  business  in  1898  showed  the  desirability 
of  making  such  schemes  independent  of  the  financial 
fortunes  of  the  house,  if  possible :  this  is  effected  in 
many  instances  in  France  and  Germany. 

The  employer  who  has  made  a  fortune  out  of  a  reg- 
ular business  is  coming  to  be  held  by  the  social  ethics 
of  America  responsible  for  the  spending  of  some  part 
of  it  for  the  benefit  of  the  workers  who  cooperated 
with  him,  or,  more  generally,  of  the  community  in 
which  the  fortune  was  made.  Such  gifts  should  be 
made  in  the  lifetime  of  the  giver,  and  here  in  the 
United  States  it  is  plainly  desirable  that  they  should 
be  made  to  the  municipality,  rather  than  to  the  work- 
men of  a  factory,  if  the  welfare  of  the  latter  can  be  as 
well  secured  in  this  way.  A  free  library  in  a  manu- 
facturing town  is  better  given  to  the  town  by  the  mill- 
owner,  than  to  the  quarter  in  which  the  mill  is  located 
for  the  exclusive  use  of  the  operatives.  In  this  way 
the  manufacturer  avoids  drawing  lines  of  division 
between  his  employees  and  the  general  public.  The 
employee  is,  first  of  all,  a  man :  next,  a  citizen :  and, 


A  REALIZABLE  IDEAL  26 

lastly,  a  workingman.  The  employer's  generosity 
should  help  to  identify  the  operative  with  the  common 
life  of  the  town,  rather  than  separate  him  from  it,  in 
any  avoidable  degree.  When  a  particular  manufac- 
ture, like  that  of  scales  at  St.  Johnsbury,  Vt.,  or 
of  shovels  at  North  Easton,  Mass.,  is  the  main  busi- 
ness of  a  place  of  moderate  size,  great  manufacturing 
families  like  the  Fairbankses  or  the  Ameses  wisely 
present  schools,  libraries  and  halls  for  social  and 
other  public  purposes,  directly  to  the  town.  It  is  easy 
to  make  such  regulations  for  their  use  that  those  for 
whom  the  benefactions  are  primarily  designed  shall 
derive  as  much  benefit  as  if  they  had  the  sole  use.  In 
other  instances,  a  factory  community  may  be  at  a  con- 
siderable distance  from  the  centre  of  the  town,  form- 
ing either  a  viUage  by  itself  or  a  well-defined  suburb. 
In  such  cases  club-houses,  with  their  special  libraries, 
lecture  courses  and  entertainments  are  best  placed  in 
the  midst  of  the  population  that  they  are  to  serve.  A 
notable  instance  is  the  fine  club-house  which  the  Illi- 
nois Steel  Company  at  Joliet  provides  for  its  men.  A 
liberal  spirit  will  naturally  throw  open  such  advan-. 
tages  to  the  other  residents  of  the  village  or  suburb, 
thus  preserving  the  community  principle  as  far  as 
possible. 

The  number  of  employers  in  this  country  who  fur- 
nish free  reading-rooms  and  libraries  in  their  works  is 
considerable  (perhaps  it  is  proportionately  largest  in 
the  State  of  Connecticut),  and  it  is  steadily  increas- 
ing. It  is  greatly  exceeded,  however,  by  the  number 
of  men  and  women  of  wealth  who  have  built,  usually 
in  their  native  towns,  those  monuments  which  James 
RusseU  Lowell  thought  most  lasting  and  secure,  in 


26  A  DIVIDEND   TO  LABOR 

the  shape  of  public  libraries.  The  record  of  such 
benefactions  is  one  of  the  brightest  pages  in  American 
civilization ;  already  long,  it  is  destined  to  be  greatly 
lengthened  —  so  large  is  the  field  for  such  genuine 
philanthropy.^ 

Club-houses,  to  which  allusion  has  been  made,  are 
now  chiefly  found  in  connection  with  industries  em- 
ploying large  numbers  of  men,  like  iron  and  steel 
works,  and  steam  and  electric  railway  lines.  Of  one 
of  these  institutions,  an  employer,  weU  qualified  to 
speak,  declares  that  it  has  paid  for  its  cost  a  hundred 
times  over  in  the  improved  state  of  feeling  among 
the  men  toward  the  corporation.  Such  gifts  show  a 
humane  desire  on  the  part  of  the  manufacturer  to 
brighten  the  workman's  life,  and  they  caU  forth  re- 
spect and  esteem,  the  surest  preventives  of  labor- 
troubles.  These  club-houses  may  be  so  conducted  as 
to  interest  the  whole  family  of  the  workman,  through 
their  gymnasiums  and  swimming-pools,  their  libraries, 
their  technical  and  art  classes,  open  to  girls  and 
women  as  well  as  to  boys  and  men,  and  their  insur- 
ance, thrift  and  entertainment  features,  which  affect 
the  daily  welfare  of  young  and  old. 

Such  "  welfare-institutions "  as  I  have  mentioned 
(without  exhausting  the  list)  are  most  naturally  to  be 
expected  from  employers  who  have  become  prosperous 
and  can  show  their  friendly  sentiments  in  large  bene- 
factions. But  the  good  effect  of  these  evidences  of 
kindly  interest  is  not  in  proportion  to  their  size.     The 

^  The  Ninth  Report  of  the  Free  Public  Library  Commission  of 
Massachusetts  (1899),  a  large  volume  of  465  pages,  shows  that  less 
than  one  half  of  one  per  cent,  of  the  population  are  destitute  of  this 
great  opportunity.  The  library  legislation  of  New  York  and  New 
Hampshire  is  especially  admirable. 


A  REALIZABLE  IDEAL  27 

manufacturer  who  is  surely  prospering,  but  has  not 
yet  accumulated  a  large  fortime,  will  do  wisely  to 
begin  modestly  on  these  lines ;  ^  the  institutions  will 
be  a  help  in  his  quicker  progress  to  prosperity.  The 
possible  danger  of  too  much  "  paternalism "  on  his 
part  will  be  lessened  if  he  thus  begins  early  to  show 
his  philanthropic  mind ;  and  the  other  possible  danger, 
of  "pauperizing"  the  workers,  will  in  the  same  way 
be  reduced  to  a  minimum.  If  the  manufacturer  has 
kept  up  the  good  habit  of  living  near  his  mills,  the 
development  of  these  culture  institutions  will  give  a 
lively  interest  to  his  later  years,  and  tend  to  prolong 
his  residence  there.  His  family,  too,  will  be  gainers 
from  this  kindly  contact  with  the  faithful  men  and 
women  who  have  cooperated  in  establishing  their  pro- 
sperity. 

The  methods  and  the  institutions  which  have  oc- 
cupied our  attention  might  be  grouped  together  as 
instances  (they  are  far  from  covering  the  whole  field) 
of  an  "indirect  dividend  to  labor."  The  employer 
here  recognizes  a  moral  obligation,  incumbent  upon 
the  successful  producer,  to  give  a  share  of  his  fortune 
to  his  fellow- workers.  This  he  does,  not  because  it 
can  be  legally  demanded,  or  is  commonly  esteemed  a 

1  "  It  is  too  often  thought  that  the  employer  can  begin  the  social 
organization  of  his  business  only  after  he  has  reached  the  summit  of 
fortune.  What  a  mistake  !  Patronal  institutions  should  begin  with 
the  enterprise  itself,  and  develop  with  it.  With  each  new  success, 
•with  each  enlargement  of  his  industry,  the  employer  increases  his 
equipment ;  he  should  also  increase  the  security  and  the  confidence  of 
his  force,  for  as  the  workers  become  more  numerous,  superintendence 
is  more  difficult.  The  two  equipments,  the  mechanical  and  the  so- 
cial, should  never  be  separated."  (M.  J.  B.  Bailie,  the  head  of  the 
Baille-Lemaire  Opera-Glass  Works,  Paris.) 


28  A  DIVIDEND   TO  LABOR 

portion  of  ordinary  justice,  but  because  his  large 
moneyed  ability  seems  to  him  to  impose  the  responsi- 
bility of  that  finer  justice  which  men  call  generosity. 
Since  all  such  gifts  necessarily  come  out  of  the  profits 
actually  realized,  the  method  followed  is  that  of  an 
informal  "  collective  profit  sharing,"  as  it  might  be 
called.  In  this  manner  of  dividing  profits  the  em- 
ployer makes  no  promises  binding  at  law  and  draws 
up  no  scheme,  but  simply  acts  at  his  pleasure,  from 
his  desire  that  his  men  shall  practically  share,  in  an 
undetermined  degree,  in  his  prosperity.  Considera- 
ble sums  (as  they  are  seen  to  be,  when  the  gifts  of 
several  years  are  brought  together)  are  thus  with- 
drawn, which  might  have  gone  into  the  pockets  of  the 
mill-owner  or  the  shareholder.  It  is  not  to  be  taken 
for  granted,  however,  that,  in  the  absence  of  such 
gifts  and  of  the  resulting  good  feehng,  the  profits 
woidd  have  been  as  large.  The  financial  as  weU  as 
the  moral  result  may  be  one  of  clear  gain. 

A  direct  dividend  to  labor  in  the  shape  of  a  system 
of  profit  sharing,  formally  estabhshed  with  rules  and 
regulations,  is  a  further  step  in  the  union  of  the 
employer  and  the  employee.  My  principal  object  in 
the  present  volume  being  to  treat  of  the  informal  divi- 
sion of  profits  in  such  ways  as  have  been  mentioned, 
I  postpone  to  Part  III.  some  consideration  of  recent 
phases  of  this  conscious  modification  of  the  usual 
wages-system.  A  small  number  of  employers  have 
had  the  courage  to  try  this  path.  Such  shining  in- 
stances of  success  in  this  country  as  the  cases  of  the 
N.  O.  Nelson  Company  of  St.  Louis,  the  Procter  and 
Gamble  Company  of  Cincinnati,  and  the  Bourne  Mills 
of  Fall  River,  prove  to  demonstration  the  intrinsic 


A  REALIZABLE  IDEAL  29 

merits  of  the  profit-sharing  plan,  when  wisely  con- 
ceived in  its  details,  and  patiently  adhered  to  through 
the  earlier  difficulties  of  its  application. 

Profit  sharing  proper  seems,  however,  to  be  a  counsel 
of  perfection  too  severe  for  the  caution  and  the  patience 
of  the  ordinary  employer.  Numerous  ways  and  meth- 
ods of  indirect  profit  sharing  which  have  been  widely 
successful  wlU  be  more  acceptable  to  his  prudence  or 
his  inertia.  I  shall  describe  many  instances  of  such  an 
indirect  dividend  to  labor  in  Part  II.  They  will  show 
that  the  demand  of  the  ideal  I  have  outlined  has  been 
met  by  numerous  employers  of  labor  whose  ability  is 
as  little  to  be  doubted  as  their  success.  What  they 
have  done  in  the  manifestation  of  a  friendly  interest 
in  their  workpeople  many  other  employers  could  do. 
The  fashion  of  such  humanity  might  largely  spread, 
and  no  existing  industrial  system  undergo  essential 
alteration.  The  distant  future  of  industry  may  belong 
to  cooperative  production  or  even  to  the  socialistic 
state :  but  the  present  and  the  near  future  belong, 
very  plainly,  to  capitalistic  production  on  a  large  scale. 
The  employer-manager  is  an  essential  part  of  this 
system.  It  is  an  undeniable  fact  that  he  can  do  a 
great  deal  toward  settling  labor  problems  by  conform- 
ing the  relations  of  employer  and  employed  to  a  high 
ideal  of  humaneness,  kindness  and  fraternity. 

The  faith  I  here  defend,  that  the  individual  em- 
ployer of  labor  has  it  in  his  power  to  give  a  very 
practical  solution  of  the  labor  question  which  immedi- 
ately confronts  him,  finds  signal  confirmation  in  the 
life  of  one  of  the  first  modem  employers  on  a  great 
scale,  —  Robert  Owen.  His  early  career  is  full  of  in- 
struction for  all  who  now  have  the  same  responsibility. 


CHAPTER  III 

ROBERT   OWEN   THE   MANUFACTURER 

Robert  Owen  was  bom  in  1771  and  died  in  1857. 
In  his  long  lifetime  he  saw  the  rise  and  the  full 
accomplishment  of  the  "  industrial  revolution  "  which 
superseded  domestic  industry  and  manual  labor  proper, 
and  introduced  costly  machinery  and  the  factory  sys- 
tem of  production. 

Employers  of  the  present  day  can  hardly  realize 
some  of  the  cruel  aspects  of  this  revolution  in  its 
earlier  stages.  But  when  we  incline  to  lightly  adopt 
"  the  casual  creed  "  that  every  class  of  people  is  best 
left  to  work  out  its  own  salvation,  and  that  any  and 
every  other  class  will,  on  the  whole,  do  it  substan- 
tial justice,  we  do  well  to  recall  the  history  of 
the  English  factory  system,  especially  as  it  operated 
between  1780  and  1830.  The  bare  facts  constitute 
one  of  the  most  convincing  proofs  ever  given  among 
men  that  the  greed  of  gain  may  be  a  consuming 
power,  needing  all  the  force  of  philanthropy  and 
legislation  to  keep  it  within  the  bounds  of  himianity. 
The  astonishing  and  apparently  hmitless  fortunes 
opening  before  the  eyes  of  Enghsh  manufacturers  in 
this  period  had  an  intoxicating  effect.  Their  moral 
sense  seemed  to  be  drugged.  Men  in  a  presumably 
Christian  nation  were  long  guilty  of  conduct  towards 
the  children  of  the  poor,  working  in  their  factories, 
that  almost  defies  belief  to-day  for  its  atrocity. 


ROBERT  OWEN  THE  MANUFACTURER      31 

It  is  not  at  all  necessary  to  dilate  rhetorically  upon 
the  depravity  or  the  weakness  of  human  nature  as 
exhibited  by  the  mill-owners  and  overseers  of  this 
time :  unquestioned  facts  sufficiently  tell  the  story. 
Workhouse  children,  six  years  old  and  upward,  were 
let  out  in  gangs  by  parish  authorities  to  manufac- 
turers who  kept  them  in  the  mill  ten,  twelve  or  four- 
teen hours  a  day.  "  The  parish  apprentices  were 
sent,  without  remorse  or  inquiry,  to  be  '  used  up '  as 
the  cheapest  raw  material  in  '  the  market.'  The 
mill-owners  communicated  with  the  overseer  of  the 
poor  and  a  day  was  fixed  for  the  examination  of  the 
little  children.  .  .  .  On  their  arrival  in  Manchester 
or  other  towns,  if  not  previously  assigned,  they  were 
deposited  in  dark  cellars,  where  the  merchant  dealing 
in  them  brought  his  customers,  and  the  mill-owners,  by 
the  light  of  lanterns,  being  enabled  to  examine  the 
children,  their  limbs  and  stature  having  undergone 
the  necessary  scrutiny,  the  bargain  was  struck.  ...  In 
very  many  instances  their  labor  was  limited  only  by 
exhaustion  after  many  modes  of  torture  had  been 
unavailingly  applied  to  enforce  continued  action.  .  .  . 
In  brisk  times  their  beds,  such  as  they  were,  were  never 
cool,  for  the  mills  were  working  night  and  day,  and 
as  soon  as  one  set  of  children  rose  for  labor,  the  other 
set  retired  for  rest." 

The  unavoidable  results  of  such  monstrous  over- 
work were,  of  course,  "  sleepiness,  weariness,  inatten- 
tion, repeated  carelessness,  punishment,  sulkiness,  a 
degradation  of  the  whole  moral  being,  a  perpetual 
hostility  between  overlooker  and  children,  followed  by 
frequent  and  cruel  chastisements."  The  interest  of 
the  overseers  was  "  to  work  the  children  to  the  utmost, 


32  A  DIVIDEND   TO  LABOR 

because  their  pay  was  in  proportion  to  the  quantity  of 
work  that  they  could  exact.  Cruelty  was,  of  course, 
the  consequence."  Hutton,  afterward  the  historian 
of  Derby,  for  instance,  was  set  to  work  in  a  silk-mill 
when  he  was  so  short  that  he  was  placed  on  stilts  to 
reach  his  work.  His  master's  cane  was  so  freely 
employed  to  keep  up  his  attention  during  the  long 
hours  that  his  life  was  in  danger  from  the  gangrened 
wounds.  "  Children  were  harassed  to  the  brink  of 
death  by  excess  of  labor :  in  many  cases  they  were 
starved  to  the  bone,  while  flogged  to  their  work ;  and 
in  some  instances  they  were  driven  to  commit 
suicide."  ^  The  story  of  the  sufferings  of  Robert 
Blincoe,  in  a  cotton-mill  at  Nottingham,  is  appalling 
to  the  last  degree  :  it  is  given  in  painful  detail  in  Mr. 
Cooke  Taylor's  excellent  work  to  which  I  will  refer 
my  readers  (pp.  189-198.) 

The  condition  of  the  adult  operatives  in  the  textile 
factories  was  such  as  to  threaten  a  permanent  lower- 
ing of  the  public  health  and  the  national  vitality. 
Dr.  James  P.  Kay  (afterwards  Sir  James  Kay- 
Shuttle  worth),  in  a  pamphlet  published  in  1832, 
forcibly  described  the  daily  life  of  the  Manchester 
operative.  He  rose  at  five  o'clock  in  the  morning, 
worked  in  the  mill  from  six  tiU  eight,  and  then 
returned  home  for  half  an  hour  or  forty  minutes  to 
breakfast.  This  consisted  of  tea  or  coffee  with  a  little 
bread.  He  then  went  to  work  until  twelve  o'clock. 
At  the  dinner  hour  the  meal,  for  the  inferior  work- 
men, consisted  of  boiled  potatoes,  with  melted  lard  or 

1  The  Curse  of  the  Factory  System,  by  John  Fielden,  M.  P.  (1836), 
as  quoted  in  R.  W.  Cooke  Taylor's  Modern  Factory  System  (pp.  187- 
189,  Kegan  Paid  &  Co.,  London,  1891). 


ROBERT  OWEN  THE  MANUFACTURER      33 

butter  poured  over  them,  and  sometimes  a  few  pieces 
of  fried  fat  bacon.  In  the  case  of  those  with  greater 
incomes,  there  was  a  larger  proportion  of  animal  food, 
but  the  quantity  was  small.  Work  went  on  again 
from  one  o'clock  to  seven  or  later,  and  the  last  meal 
of  the  day  was  tea,  often  mingled  with  spirits,  accom- 
panied by  a  little  bread.  "  The  population  nourished 
on  this  aliment  is  crowded  into  one  dense  mass,  in 
cottages  separated  by  narrow,  unpaved,  and  almost 
pestilential  streets,  in  an  atmosphere  loaded  with  the 
smoke  and  exhalations  of  a  large  manufacturing  city. 
The  operatives  are  congregated  in  rooms  and  work- 
shops during  twelve  hours  in  the  day,  in  an  enervating 
heated  atmosphere,  which  is  frequently  loaded  with 
dust  of  filaments  of  cotton,  or  impure  from  constant 
respirations  or  from  other  causes."  The  workers  in 
the  mills,  as  depicted  by  Mr.  Gaskell  were  "  low  in 
stature,  with  slender  limbs,  playing  badly  and  un- 
gracefully. There  was  a  very  general  bowing  of  the 
legs.  Great  numbers  of  girls  and  women  walk 
lamely  or  awkwardly,  with  raised  chests  and  spinal 
flexures.  Nearly  all  have  flat  feet,  accompanied  with 
a  down  tread.  .  .  .  Hair  thin  and  straight  —  many  of 
the  men  having  but  little  beard  and  that  in  patches 
of  few  hairs.  ...  A  spiritless  and  dejected  air." 

Against  such  distresses  and  inhumanities  the  philan- 
thropists and  the  doctors  of  medicine  gradually  rallied 
public  opinion,  and  the  factory  legislation  of  Great 
Britain  began  to  take  effective  shape.  The  future  of 
the  country  could  not  be  trusted  in  the  hands  of  the 
short-sighted  and  narrowly  selfish  manufacturers. 
The  ruinous  results  which  their  cupidity  would  have 
surely  brought  upon  the  nation  were   averted   by  a 


34  A  DIVIDEND  TO  LABOR 

gradual  succession  of  Acts  of  ParKament  that  re- 
strained the  greed  of  heartless  employers  and  en- 
couraged the  more  generously  incHned  to  foUow  their 
natural  impulses  of  humanity  without  fear  of  being 
distanced  by  unscrupulous  rivals.  A  shining  example 
of  what  the  employers  might  do  had  been  given  them 
in  the  work  of  Robert  Owen.  He  is  often  called 
"the  father  of  EngHsh  Communism,"  or  socialism, 
but  his  best  title  to  remembrance  is  as  the  manager  of 
the  New  Lanark  Mills  and  the  real  founder  of  infant 
schools  in  Great  Britain.  His  story  has  the  interest 
that  always  attaches  to  the  life  of  a  man  of  great 
natural  ability  making  his  way  from  a  humble  begin- 
ning to  noble  achievements,  and  mindful,  from  first 
to  last,  of  the  obligations  of  his  nobihty  to  his  less 
gifted,  less  fortunate  feUow-men. 

Robert  Owen  began  atmospheric  existence  (in  Dr. 
Holmes'  phrase)  May  14,  1771,  at  Newtown,  then  an 
attractive  place  with  a  population  of  one  thousand,  in 
Montgomeryshire,  Wales.^  His  father  was  a  saddler 
and  iron-monger ;  his  mother,  a  beautiful  woman,  was 
a  farmer's  daughter,  and  "for  her  class,"  says  her 
son,  "  superior  in  mind  and  manner."  Robert  Owen, 
the  father,  was  postmaster  of  Newtown,  holding  a 
life  tenure,  and  he  also  had  the  general  management 
of  the  parish  affairs.  The  young  Robert  was  sent 
to  school  when  he  was  between  four  and  five.  His 
anxiety  to  be  first  at  school  and  first  home  came  near 
costing  him  his  life  when  he  was  about  five  years  old. 
Running  home  one  morning,  he  found  his  usual  basin 
of   "  flummery "    (a   Welsh    equivalent    of    oatmeal 

^  The  principal  authority  for  the  facts  of  Owen's  life  is  his  auto- 
biography, published  in  1857  :  I  have  quoted  it  freely. 


ROBERT  OWEN  THE  MANUFACTURER      35 

porridge)  awaiting  him.  Supposing  it  to  be  cool,  he 
took  a  hasty  spoonful.  As  it  was,  in  fact,  scalding 
hot,  he  fainted  instantly :  his  stomach  was  scalded, 
and  he  remained  in  the  faint  so  long  that  he  was 
thought  to  be  dead.  It  was  a  considerable  time 
before  he  revived,  and  ever  after  he  could  digest  only 
the  simplest  food  taken  in  small  quantities.  Owen 
was  thus  naturally  led  to  observe  the  effects  of 
various  foods  on  his  debilitated  stomach,  and  he 
attributes  his  "  habit  of  close  observation  and  of  con- 
tinual reflection  "  to  this  misfortune.  However  this 
may  have  been,  it  is  probably  true,  as  he  always 
thought,  that  the  accident  "  had  a  great  influence  "  in 
forming  his  character. 

By  the  age  of  seven,  the  boy  had  learned  all  that 
Mr.  Thickness,  his  teacher,  could  impart,  —  reading 
fluently,  writing  legibly,  and  having  an  acquaintance 
with  the  first  four  rules  of  arithmetic.  He  remained 
in  the  school  two  years  longer  as  "  usher,"  learning  thus 
early  to  teach  what  he  knew.  He  had  a  passion  for 
books,  and  read  nearly  everything  which  the  libraries 
of  the  clergyman,  the  physician  and  the  lawyer  —  "  the 
learned  men  of  the  town  "  —  contained.  Beside  "  Rob- 
inson Crusoe,"  the  "  Pilgrim's  Progress,"  "  Paradise 
Lost,"  and  Young's  "  Night  Thoughts,"  for  instance, 
the  eager  boy  read  Richardson's  novels  and  the  other 
standard  fiction  of  the  time,  believing  every  word  to  be 
true,  and  generally  finishing  a  volume  a  day.  Travel, 
history,  biography,  —  nothing  came  amiss,  but  Robert's 
chief  inclination  between  eight  and  nine  was  for  reli- 
gious literature.  As  he  read  "  religious  works  of  all 
parties,"  he  was  surprised  "  first  at  the  opposition  be- 
tween the  different  sects  of  Christians,  afterwards  at 


36  A  DIVIDEND  TO  LABOR 

the  deadly  hatred  between  the  Jews,  Christians,  Ma- 
homedans,  Hindoos,  Chinese,  etc.,  etc.,  and  between 
these  and  what  they  called  Pagans  and  Infidels." 
The  benevolent  httle  philosopher  began  to  have  his 
doubts  "  respecting  the  truth  of  any  one  of  these 
divisions."  He  wrote  three  sermons,  which  he  kept 
until  he  found  three  in  Sterne's  works  very  much  Hke 
them  "  in  idea  and  turn  of  mind."  "  The  httle  par- 
son," as  he  was  called,  had  a  very  honest  dread  of 
lying  under  suspicion  of  plagiarism,  and  he  at  once 
threw  these  first  and  last  sermons  into  the  fire ;  but 
the  preaching  habit  was  one  that  he  always  retained. 
The  residt  of  all  his  reading  made  him  feel  strongly 
at  ten  years  of  age  that  "there  must  be  something 
fimdamentally  wrong  in  all  religions  as  they  had  been 
taught  up  to  that  period." 

The  boy  was  obliged  to  be  an  ascetic  in  diet,  but 
he  excelled  in  games  and  manly  exercises,  was  fond  of 
dancing  and  music,  and  took  a  pleasure  "  in  observing 
nature  in  its  every  variety,"  which  grew  with  his 
strength. 

Robert  Owen's  business  life  began  at  nine ;  he 
assisted  Mr.  Moore,  a  grocer,  draper  and  haberdasher, 
for  a  year,  but  lived  at  home.  His  horizon  had 
been  so  widened,  however,  by  his  reading  that  he 
wished  to  go  up  to  London ;  and  at  ten  he  got  per- 
mission from  his  father  to  try  his  fortune  in  the  great 
city.  Knowing  every  person  in  Newtown,  the  little 
man  called  on  them  all  to  take  leave ;  the  presents 
which  he  received  amounted  to  forty  shillings.  His 
coach  fare  from  Shrewsbury  was  paid  for  him.  His 
brother  William,  a  saddler  on  High  Holborn,  who 
had  married  his  former  employer's  widow,  received 


ROBERT  OWEN  THE  MANUFACTURER      37 

Robert  affectionately.  Six  weeks  later  a  London 
friend  of  his  father  procured  for  him  a  situation  with 
Mr.  James  McGuffog,  a  successful  draper  in  Stamford, 
Lincolnshire.  He  was  to  have  board,  lodging  and 
washing  the  first  year,  and,  in  addition,  a  salary  of 
eight  pounds  the  second  year,  and  ten  pounds  the 
tliird.  Robert  was  thus  independent  from  his  tenth 
year.  His  new  master  was  an  excellent  man  of  busi- 
ness, honest,  systematic  and  kind;  he  had  a  large 
circle  of  wealthy  and  titled  customers.  Mr.  and  Mrs. 
McGuffog  were,  in  fact,  "quite  the  aristocracy  of 
retail  tradespeople,  without  the  usual  weak  vanities 
of  the  class."  Robert  was  thus  made  in  some  degree 
acquainted  with  "  what  is  called  the  great  world,"  and 
became  "familiar  with  the  finest  fabrics  of  a  great 
variety  of  manufactures"  which  such  persons  de- 
manded. 

During  his  four  years  at  Stamford,  young  Owen 
read,  upon  the  average,  five  hours  a  day,  using  Mr. 
McGuffog's  well  -  selected  library.  Burleigh  Park, 
near  by,  was  his  summer  study  in  the  early  morning 
and  the  evening ;  pondering  there  over  Seneca's  moral 
precepts,  which  he  had  copied  into  a  pocket-book,  was 
one  of  his  pleasurable  occupations.  He  had  before 
him  a  striking  example  of  theological  diversity  in  reli- 
gious unity,  as  Mr,  McGuffog  belonged  to  the  Church 
of  Scotland,  and  Mrs.  McGuffog  to  that  of  England. 
Both  attended  in  the  morning  the  service  of  the  one, 
and  in  the  afternoon  the  service  of  the  other.  Robert, 
who  went  with  both,  listened  carefuRy  to  the  polemic 
sermons,  but  he  never  witnessed  any  "  religious  differ- 
ence "  between  the  worthy  husband  and  wife.  When 
he  was  twelve  or  thirteen  years  old,  he  was  troubled  by 


38  A  DIVIDEND  TO  LABOR 

the  great  disregard  of  the  Sabbath  in  Stamford,  and 
wrote  a  letter  on  the  subject  to  Mr.  Pitt,  the  Prime 
Minister.  The  innocent  young  Sabbatarian  was  natu- 
rally much  pleased,  ten  days  afterward,  at  seeing  in 
the  newspaper  "a  long  proclamation  from  the  gov- 
ernment, recommending  aU  parties  to  keep  the  Sab- 
bath more  strictly."  He  had  no  doubt  that  his  letter 
produced  the  proclamation :  certainly  the  coincidence 
amazed  his  employer. 

Robert  Owen  returned  to  London  at  fifteen,  and 
found  a  situation  with  an  old  established  house  on 
London  Bridge,  Fhnt  &  Palmer.  The  business  was 
conducted  on  a  cash  basis,  and  was  very  prosperous, 
but  its  "  customers  were  of  an  inferior  class  "  to  Mr. 
McGuffog's  carriage  people.  The  work  was  severe, 
and  the  dressing  required  before  it  began  at  eight 
o'clock  A.  M.  was  an  elaborate  matter.  "Boy  as  I 
was  then  [1786],  I  had  to  wait  my  turn  for  the 
hair-dresser  to  powder  and  pomatum  and  curl  my  hair, 
for  I  had  two  large  curls  on  each  side,  and  a  stiff  pig- 
tail, and  imtil  all  this  was  very  nicely  and  systemati- 
cally done,  no  one  could  think  of  appearing  before  a 
customer."  Customers  crowded  the  shop  until  ten 
o'clock  in  the  evening,  and  three  or  four  hours  were 
required  to  arrange  the  goods  for  the  next  day. 

Unable  to  support  such  a  strain  for  a  long  time, 
young  Owen  accepted  an  offer  of  forty  pounds  a  year 
and  "  keep  "  from  Mr.  Satterfield,  a  leading  draper  in 
Manchester,  whose  "  customers  were  generally  of  the 
upper  middle  class,  —  the  well-to-do  manufacturers' 
and  merchants'  wives  and  families."  Owen  continued 
here  until  he  was  eighteen.  The  diversity  of  his 
apprenticeships  gave  him  a  wide  opportunity  for  learn- 


ROBERT  OWEN  THE  MANUFACTURER      39 

ing  the  draper's  business,  but  his  career  as  aii  em- 
ployer was  to  be  in  another  direction.  He  was  to 
carry  into  cotton-spinning,  however,  the  same  indus- 
try, readiness  and  aptness  which  won  the  appreciation 
of  his  masters  and  their  customers.  Very  mature  for 
his  years,  he  was  to  make  prodigious  strides  in  a  short 
time,  as  a  superintendent  and  partner. 

Mr.  Satterfield  sold,  among  other  things,  wire 
bonnet-frames,  made  by  a  mechanic  named  Jones,  a 
man  of  "  some  small  inventive  powers  and  a  very 
active  mind."  A  favorite  topic  of  conversation 
between  him  and  Owen  was  the  "  great  and  extraor- 
dinary discoveries  that  were  beginning  to  be  intro- 
duced into  Manchester  for  spinning  cotton  by  new 
and  curious  machinery."  This  was  Crompton's  "  mule." 
Jones  "  succeeded  in  seeing  these  machines  at  work," 
and  was  confident  that  he  could  make  as  good.  He 
proposed  that  Owen  should  advance  the  necessary 
capital  —  one  hundred  pounds  —  and  receive  one  half 
of  the  profits  of  a  partnership.  Owen  furnished  this 
sum  and  gave  notice  to  Mr.  Satterfield.  The  new 
firm  agreed  with  a  builder  to  erect  and  rent  them  a 
large  machine  work-shop,  with  rooms  for  some  cotton- 
spinners  :  forty  men  were  soon  at  work  making  the 
machines.  Owen  was  entirely  ignorant  of  them, 
having  never  seen  them  at  work,  but  "  I  looked  very 
wisely  at  the  men  in  their  different  departments, 
although  I  really  knew  notliing."  Jones,  he  found, 
was  simply  a  working  mechanic,  knowing  little 
about  bookkeeping,  financial  matters  or  the  superin- 
tendence of  men.  Owen  therefore  undertook  the 
accounts ;  he  was  the  first  to  reach  and  the  last  to 
leave   the   manufactory;  he  observed  everything  in- 


40  A  DIVIDEND   TO  LABOR 

tently,  and  maintained  rule  and  order  in  the  estab- 
lishment. 

Having  discovered  the  lack  of  business  capacity  in 
his  partner,  and  not  yet  being  confident  of  his  own 
powers,  Owen  readily  accepted  an  offer,  made  in  a 
few  months,  from  Jones  and  a  small  capitalist  who 
had  overrated  Jones'  business  ability :  he  agreed  to 
sell  his  share  in  the  business  for  six  mules,  a  reel  and 
a  "  making-up  "  machine  for  packing  the  skeins  of 
yarn  into  bundles.  Jones  and  his  new  partner  soon 
failed,  and  Owen  actually  received  from  them  only 
three  mules.  With  these  he  began  the  world  on  his 
own  account :  he  took  a  large  factory  in  Ancoats  Lane 
and  set  three  men  at  work  in  a  small  part  of  one  of 
the  large  rooms.  He  bought  "  rovings  "  —  the  half- 
made  material  for  thread  —  which  the  men  spun,  in 
the  cop  form.  Owen  himself  made  up  the  thread  on 
the  reel  into  hanks  of  one  hundred  and  forty  yards 
in  length :  he  then  made  these  into  bundles  of  five 
pounds  which  he  sold  to  Glasgow  houses  from  whom 
it  passed  to  muslin  weavers.  Owen  averaged  six 
pounds  profit  a  week,  letting  the  rest  of  his  building 
so  as  to  meet  his  whole  rent.  For  rovings  he  paid 
twelve  shillings  per  pound,  and  he  sold  the  thread  for 
twenty-two  shillings  a  pound. 

At  this  time,  1791,  cotton-spinning  was  attracting 
the  attention  of  capitalists,  as  a  very  lucrative  invest- 
ment. Mr.  Drinkwater,  a  wealthy  manufacturer  and 
merchant  of  Manchester,  had  erected  a  mill  for  fine 
spinning :  the  manager  on  whom  he  was  relying  hav- 
ing left  him,  he  advertised  for  a  successor.  Kobert 
Owen  appKed  for  the  situation.  Mr.  Drinkwater 
was  surprised  by  his  youth  (Owen  looked  young  for 


ROBERT  OWEN  THE  MANUFACTURER      41 

his  actual  age),  and  by  his  reply  to  the  question, 
"  How  often  do  you  get  drunk  in  the  week  ?  "  Drunk- 
enness was  a  common  habit  at  this  period,  with  almost 
aU  persons  in  Manchester  and  Lancashire.  " '  I  was 
never  drunk  in  my  life,'  I  said,  blushing  scarlet  at 
this  unexpected  question."  Mr.  Drinkwater  was 
more  surprised,  however,  at  the  sum  —  three  hundred 
pounds  —  which  Owen  asked  as  salary :  but  Owen's 
books  convinced  him  that  the  latter  was  making  as 
much  in  his  business,  and  he  accepted  the  terms. 

Owen  entered  the  mill  as  manager  without  the 
slightest  instruction  or  explanation  from  any  one. 
"  Five  hundred  men,  women  and  children  were  busily 
occupied  with  machinery,  much  of  which  I  had 
scarcely  seen,  and  never  in  regular  connection,  to 
manufacture  from  the  cotton  to  the  finished  thread." 
Sensitive  but  self-confident,  he  had  applied  for  the 
place  on  the  impulse  of  the  moment,  with  no  realiz- 
ing sense  of  the  demands  of  the  situation.  But  the 
raw  young  Welshman,  not  yet  twenty,  had  heroic 
stuff  in  him :  he  was  a  born  manager  of  men,  and  he 
was  to  become  the  first  cotton-spinner  of  his  genera- 
tion. It  was  for  him  "  to  purchase  the  raw  material ; 
to  make  the  machines,  for  the  mill  was  not  nearly 
filled  with  machinery  :  to  manufacture  the  cotton  into 
yam,  to  sell  it,  and  to  keep  the  accounts,  pay  the 
wages,  and,  in  fact,  to  take  the  whole  responsibility 
of  the  first  fine  cotton-spinning  establishment  by 
machinery  that  had  ever  been  erected :  .  .  .  the  new 
mill  was  considered  almost  one  of  the  wonders  of  the 
mechanical  and  manufacturing  world."  Owen  rose 
to  the  stupendous  demands  of  this  situation.  "  I  at 
once  determined  to  do  the  best  I  could.     I  looked 


42  A  DIVIDEND   TO  LABOR 

grave,  —  inspected  everything  very  minutely,  —  ex- 
amined the  drawings  and  calculations  of  the  machinery, 
as  left  by  Mr.  Lee,  and  these  were  of  great  use  to 
me.  I  was  with  the  first  in  the  morning,  and  I 
locked  up  the  premises  at  night,  taking  the  keys  with 
me.  I  continued  this  silent  inspection  and  superin- 
tendence day  by  day  for  six  weeks,  saying  merely  '  yes  ' 
or  '  no '  to  the  questions  of  what  was  to  be  done  or 
otherwise,  and  during  that  period  I  did  not  give  one 
direct  order  about  anything.  But  at  the  end  of  that 
time  I  felt  myself  so  much  master  of  my  position  as 
to  be  ready  to  give  directions  in  every  department. 
My  previous  habits  had  prepared  me  for  great  nicety 
and  exactness  of  action,  and  for  a  degree  of  perfec- 
tion in  operations  to  which  parties  then  employed  in 
cotton-spinning  were  little  accustomed.  I  soon  per- 
ceived the  defects  in  the  various  processes." 

Owen  quickly  improved  the  very  indifferent  quality 
of  the  thread  then  considered  to  be  extraordinarily 
light  in  weight,  one  hundred  and  twenty  hanks 
making  a  pound.  He  rearranged  the  factory,  and 
kept  it  constantly  in  a  state  to  be  inspected  by  any 
one.  His  kindliness  and  executive  talent  gained  the 
respect  and  good-will  of  the  workpeople,  and  in  six 
months  "  their  order  and  disciphne  exceeded  that  of 
any  other  [factory]  in  or  near  Manchester ;  and  for 
regularity  and  sobriety  they  were  an  example  which 
none  could  then  imitate."  Owen's  creed  had  by  this 
time  shaped  itself  into  a  very  strong  belief  in  the 
omnipotence  of  circumstances,  or  the  environment,  in 
forming  character.  The  negative  side  of  this  creed 
—  disbelief  in  all  positive  religions  as  special  revela- 
tions of  any  value  beyond  the  amount  of  universal 


ROBERT  OWEN  THE  MANUFACTURER      43 

charity  that  they  contained  —  did  not  become  promi- 
nent for  a  number  of  years.  The  positive  element  was 
a  very  earnest  philanthropy  which  never  ceased  to 
characterize  Owen's  practice,  whatever  were  his 
limits  in  intellectual  clearness  of  view  and  hospitality 
of  culture.  He  treated  his  men  as  friends  and  co- 
workers, and  their  regard  for  him  was  constant. 

Mr.  Drinkwater  realized  that  he  had  hit  upon  a 
man  of  great  business  ability  in  his  youthful  manager, 
and  he  agreed  to  give  him  four  hundred  pounds  salary 
for  the  second  year,  five  hundred  for  the  third,  and  a 
quarter  part  of  the  profits  in  the  fourth.  Owen's 
name  was  now  printed  on  the  five-pound  packages  of 
yarn,  to  distinguish  it  from  that  made  by  the  former 
manager,  and  it  sold  readily  at  high  prices,  ten  per 
cent,  above  the  list-price  of  the  trade.  He  was  now 
one  of  the  best  judges  of  raw  material  in  the  market 
(he  was  the  first  to  discover  the  fine  quality  of  Amer- 
ican Sea  Island  cotton),  and  for  forty  years  he  was 
foremost  in  the  manufacture.  Within  a  year  after 
he  took  charge  of  the  Bank  Top  Mill,  he  increased 
the  fineness  of  the  finished  thread  from  120  to  more 
than  300  hanks  in  the  pound ;  50  per  cent,  above  the 
list-price  was  easily  obtained  for  such  thread.  The 
cotton  bought  for  five  shillings  a  pound  was  made 
into  thread  that  was  sold  to  Scotch  muslin  manufac- 
turers at  £9  18s.  6t7.  a  pound.  The  war  with  France 
reduced  these  high  prices. 

Owen,  now  a  prominent  man  in  Manchester,  enjoyed 
the  acquaintance  of  John  Dalton,  the  future  founder 
of  the  atomic  theory,  and  other  members  of  the  Lit- 
erary and  Philosophical  Society  of  the  city.  Cole- 
ridge, also,  was  a  friend  at  this  time.     The  connection 


44  A  DIVIDEND  TO  LABOR 

with  Mr.  Drinkwater  was  terminated  in  1795.  Mr. 
Samuel  Oldknow,  a  noted  manufacturer,  was  to  be- 
come Mr.  Drinkwater's  son-in-law,  and  he  wished  to 
retain  all  the  profits  of  the  business  in  the  family. 
Owen  was  asked  to  name  his  own  salary,  if  he  would 
resign  the  partnership :  but  he  at .  once  threw  the 
agreement  into  the  fire,  and  declined  to  remain  as 
manager  at  any  salary.  It  was  not  long  before  his 
high  reputation  as  a  manager  brought  about  a  part- 
nership with  two  rich  and  long-estabhshed  houses,  — 
Borrodale  and  Atkinson  of  London,  and  the  Messrs. 
Barton  of  Manchester,  —  under  the  name  of  the 
Chorlton  Twist  Company.  Owen  superintended  the 
building  of  a  large  factory  for  its  operations.  The 
new  company  prospered,  of  course.  Owen  was  buyer 
and  seller  for  it,  as  well  as  manufacturer.  Travehng 
in  the  North  to  extend  its  trade,  he  paid  a  visit  to 
Glasgow  in  1798,  the  result  of  which  was  a  remark- 
able blending  of  business  and  love-making ;  it  had  a 
decisive  influence  on  Owen's  future  as  a  practical 
philanthropist.  His  own  detailed  and  animated  ac- 
count of  the  matter  must  be  much  mutilated  here  in 
the  necessary  abridgment. 

Arrived  in  Glasgow,  Owen  soon  met  a  Manchester 
friend,  Miss  Spear,  in  company  with  Miss  Dale,  the 
oldest  daughter  of  David  Dale,  "  then  one  of  the  most 
extraordinary  men  in  the  commercial  world  of  Scot- 
land—  an  extensive  manufacturer,  cotton  -  spinner, 
merchant,  banker  and  preacher."  He  had  the  super- 
intendence of  some  forty  churches  of  an  Independent 
sect,  one  of  the  tenets  of  which  was  an  aversion  to  a 
"  hired  ministry ; "  and  he  preached  every  Simday  in 
Glasgow.     Miss  Dale,  who  was  much  taken  with  the 


ROBERT  OWEN  THE  MANUFACTURER      45 

talented  young  Manchester  manufacturer,  offered  him 
a  letter  of  introduction  to  her  uncle,  one  of  the  man- 
agers of  her  father's  mills  at  New  Lanark,  some  thirty 
miles  above  Glasgow,  at  the  Falls  of  the  Clyde ;  these 
were  erected  in  1784.  After  inspecting  the  four 
miUs  and  the  manufacturing  village,  Owen  said  to  a 
traveling  companion :  "  Of  all  places  I  have  yet  seen, 
I  should  prefer  this  in  which  to  try  an  experiment  I 
have  long  contemplated  and  have  wished  to  have  an 
opportunity  to  put  into  practice."  This  referred  to 
plans  for  improving  the  condition  of  operatives  in 
cotton  -  mills.  Just  before  this,  after  parting  with 
Owen  for  the  first  time,  Miss  Dale  (as  his  friend,  Miss 
Spear,  afterward  kindly  told  him  at  a  critical  moment) 
had  said,  "  I  do  not  know  how  it  is  —  but  if  ever  I 
marry,  that  is  to  be  my  husband !  " 

A  second  visit  to  Glasgow  on  business  began  "  to 
create  other  feelings  than  those  of  mere  business  "  in 
the  young  cotton-spinner's  mind.  Miss  Spear's  en- 
couragement, and  her  judicious  betrayal  of  Miss  Dale's 
intimate  speech,  overcame  the  timidity  which  he  felt 
when  he  thought  of  David  Dale's  eminent  position 
and  his  religious  cast.  On  a  third  visit.  Miss  Dale 
told  him  that  her  father  (whom  Owen  had  not  yet 
seen)  was  wishing  to  sell  the  New  Lanark  establish- 
ment. Owen  haAdng  declared  his  feelings  ("  I  was 
now  fairly  in  love,  and  deeply  so  "),  she  replied  that 
she  could  not  marry  without  Mr.  Dale's  consent,  — 
"  so  good  a  man  and  so  kind  a  father," —  and  she  saw 
no  prospect  that  tliis  consent  could  be  obtained. 

Business,  philanthropy  and  probably  love  most  of 
all,  suggested  to  Owen  the  happy  thought  of  buying 
the  New  Lanark  MiUs.     He  could  at  least  get  ac- 


46  A  DIVIDEND  TO  LABOR 

quainted  with  Mr.  Dale  in  making  inquiries.  Mr. 
Dale  received  him  coldly,  if  not  suspiciously.  At  his 
suggestion,  Owen  examined  the  mills  again :  on  his 
return  to  Manchester,  his  partners  listened  favorably 
to  his  proposal  to  buy,  and  two  of  them  went  back  to 
New  Lanark  with  him.  They  were  much  pleased  with 
what  they  saw,  and  went  on  to  Glasgow.  Mr.  Dale 
had  now  been  informed  by  his  daughter  of  Owen's 
love  for  her,  and  had  expressed  himself  vigorously 
about  this  "  land  louper  "  who  pretended  to  want  to 
buy  New  Lanark.  He  was  surprised  at  Owen's 
speedy  reappearance  in  the  company  of  men  whose 
high  standing  he  knew,  with  an  offer  to  open  negoti- 
ations. The  next  day,  after  he  had  made  some  in- 
quiries, he  declared  himself  ready  to  sell,  and  accepted 
the  price  which  Owen  was  asked  by  him  to  name  as 
fair,  —  sixty  thousand  pounds,  payable  at  the  rate  of 
three  thousand  a  year  for  twenty  years. 

The  New  Lanark  Twist  Company  was  thus  begun, 
in  the  summer  of  1799,  Owen  being  twenty-eight 
years  of  age.  Mr.  Dale  still  refused  to  think  of  him 
as  a  son-in-law :  but  Miss  Dale  had  now  resolved  that 
she  would  never  marry  any  one  else.  Common  friends 
assisted  in  overcoming  the  father's  objections  before 
long :  Owen  became  a  decided  favorite  with  him,  and 
the  marriage  took  place  on  the  30th  of  September. 
Three  months  later  Owen  assumed  entire  charge  of 
the  business  in  Scotland,  entering  "  upon  the  govern- 
ment of  New  Lanark  about  the  first  of  January,  1800." 

"  I  say  government,"  he  writes  in  his  autobiography, 
"  for  my  intention  was  not  to  be  a  mere  manager  of 
cotton-miUs,  as  such  mills  were  at  this  time  generally 
managed,  but  to  introduce  principles  in  the  conduct  of 


ROBERT  OWEN  THE  MANUFACTURER      47 

the  people  which  I  had  successfully  commenced  with 
the  workpeople  in  Mr.  Drinkwater's  factory,  and  to 
change  the  conditions  of  the  people." 

Owen's  success  at  New  Lanark  was  immediate, 
signal  and  long-continued.  The  miUs  paid  regular 
dividends  and  large  profits,  and  his  plans  for  the 
improvement  of  the  character  and  condition  of  the 
operatives  were  completely  justified  by  the  result. 
New  Lanark,  as  Owen  reconstructed  it,  became  famous 
the  world  over  for  many  years  ;  it  was  his  one  entire 
success,  which  contrasted  vividly  with  the  imiform 
failure  of  his  communistic  and  socialistic  experiments 
in  his  later  life.  It  is  a  bright  and  illustrious  exam- 
ple of  what  a  liberal-minded  and  prosperous  employer 
can  do  for  the  elevation  of  those  who  work  for  him. 
The  thoroughness  of  its  success  in  a  time  when  the 
industrial  revolution  had  worked  such  lamentable 
results  in  the  whole  manufacturing  world  is  a  convin- 
cing testimony  to  the  sterling  philanthropy  and  the 
fundamental  sagacity  of  Robert  Owen's  genius.  It  is 
an  example  that  cannot  be  too  carefully  pondered  by 
modern  employers  of  labor  on  a  large  scale. 

New  Lanark,  in  1800,  had  a  population  of  some 
1,300  persons  in  families.  There  were  also  400  to 
600  pauper  children,  placed  there  by  the  parish  author- 
ities of  Edinburgh  and  Glasgow;  they  appeared  to 
be  from  five  to  ten  years  of  age,  but  were  said  to  be 
from  seven  to  twelve.  Mr.  Dale,  though  unable  to 
give  personal  attention  to  his  miUs,  was  an  exception- 
ally kind-hearted  employer ;  and  he  had  provided  that 
the  children  should  be  well  lodged,  well  fed  and  well 
clothed.  The  attempt  to  teach  them  to  read  and 
write,  in  the  evening,  was  a  failure,  as  they  were  then 


48  A  DIVIDEND  TO  LABOR 

exhausted  by  the  long  day's  work:  "none  of  them 
understood  anything  they  attempted  to  read,  and 
many  of  them  fell  asleep  during  the  school  hours." 
When  their  apprenticeship  was  over,  these  children 
returned  to  the  cities  whence  they  came,  and  many  of 
them  fell  into  vicious  courses.  At  this  time  it  was 
very  difficult  to  induce  any  sober,  respectable  family 
to  leave  its  home  and  enter  the  ordinary  cotton-mill. 
The  force  of  grown-up  persons  at  New  Lanark  was 
intemperate  and  otherwise  inunoral,  with  very  few 
exceptions.  The  brother  of  a  chief  manager  was  fre- 
quently off  on  a  spree  for  weeks  together.  "Theft 
was  very  general,  and  was  carried  on  to  an  enormous 
and  ruinous  extent,  and  Mr.  Dale's  property  had  been 
plundered  in  aU  directions,  and  had  almost  been  con- 
sidered public  property." 

Owen's  thoroughgoing  acceptance  of  the  theory  that 
circumstances  make  character  naturally  led  him  to 
choose  the  course  of  mildness,  rather  than  of  severity, 
in  trying  to  alter  the  conditions  of  these  ignorant 
and  vicious  workers,  and  he  could  await  results  in 
patience.  The  vast  majority  —  idle,  intemperate,  dis- 
honest, untruthful  —  were  pretenders  to  religion. 
Owen's  faith  was  in  good  works  as  the  test  of  religious 
sincerity.  He  made  no  attack,  however,  upon  the 
established  creed,  but  aimed  directly  at  improving  the 
moral  practice  of  the  people.  The  old  superintendents 
were  too  little  in  sympathy  with  his  measures,  and 
preferred  to  leave  for  situations  elsewhere.  Owen  de- 
termined that  all  changes  should  be  made  gradually, 
and  that  the  expense  of  them  should  be  met  from  the 
profits.  He  decided  that  Mr.  Dale's  engagements 
with  parishes  respecting  the  children  should  run  out ; 


ROBERT  OWEN  THE  MANUFACTURER      49 

that  no  more  pauper  children  should  be  received ;  that 
the  village  houses  and  streets  should  be  improved,  and 
new  and  better  houses  be  erected  to  receive  new  fami- 
lies, to  supply  the  place  of  the  pauper  children.  Each 
family  had  had  but  a  single  room,  the  houses  being  of 
one  story :  "  before  each  door  it  was  not  imusual  to 
find  a  dunghill."  ^  Owen  added  a  story  to  each  house, 
giving  two  rooms  to  most  of  the  families ;  the  dung- 
hills were  removed,  and  the  renewal  of  the  nuisance 
strictly  forbidden.  The  streets  were  swept  every  day 
at  the  expense  of  the  company. 

Most  of  the  families  were  too  much  used  to  disorder 
and  dirt  to  heed  Owen's  recommendations,  and  several 
public  lectures  on  the  subject  were  as  unavailing.  A 
general  meeting  of  the  villagers  thereupon  appointed 
a  committee  to  visit  each  family  weekly  and  report  on 
the  condition  of  the  house.  Most  of  the  women  went 
into  "  a  storm  of  rage  and  opposition,"  locking  their 
doors  or  styling  the  committee  "bug-hunters,"  and 
the  like.  Owen  quietly  encouraged  the  committee  to 
persevere,  asking  admittance  as  a  favor  only.  The 
small  minority  who  welcomed  their  visits  received  a 
gift  of  plants  from  his  greenhouse,  and  a  few  friendly 
visits  from  Mrs.  Owen  aided  the  good  work.  "  Grad- 
ually the  weekly  reports  of  the  committee  became 
more  full  and  more  favorable." 

No  one  was  ever  dismissed  from  New  Lanark 
except  for  habitual  drunkenness.  Spirits  had  been 
sold  in  all  of  the  retail  shops.  Owen  put  an  end  to 
this  nuisance  by  establishing  superior  stores  and 
shops  that  could  supply  food,  clothing  and  all  other 

^  Robert  Owen  at  New  Lanark,  by  a  Former  Teacher,  quoted  by 
R.  D.  Owen  in  Threading  My  Way,  p.  71. 


50  A  DIVIDEND  TO  LABOR 

things  needed  by  the  people.  He  bought  for  cash, 
in  large  quantities,  and  sold  the  best  quality  of  every- 
thing at  cost.  The  result  was  a  saving  of  fuUy 
twenty-five  per  cent.,  to  say  nothing  of  the  gain  in 
quality.  The  unproved  health,  better  dress,  and 
more  comfortable  houses  testified  to  the  efficacy  of  this 
indirect  method  of  combating  intemperance.  With 
such  a  class  of  people,  violently  prejudiced  against 
the  "  foreign "  manager,  who  spoke  a  very  differ- 
ent language  from  their  lowland  Scotch  and  highland 
Erse,  it  was  to  be  expected  that  there  should  be  sys- 
tematic opposition  to  every  change  that  Owen  pro- 
posed. His  philosophy  stood  him  in  good  stead  in 
his  efforts  to  gain  their  confidence.  This  was  not 
fuUy  gained,  however,  until  the  year  1807,  when  the 
United  States  embargo  placed  the  British  cotton- 
manufacturers  in  a  dilemma.  Most  of  them  shut 
down  and  discharged  their  employees.  Others  con- 
tinued to  work  up  the  material  at  a  high  price,  run- 
ning the  risk  of  a  great  reduction  in  the  price  of 
material  and  stock  on  the  removal  of  the  embargo. 
With  his  large  works  Owen  concluded  that  it  would 
be  very  hazardous  to  continue  spinning,  and  it 
seemed  to  him  cruel  and  unjust  to  discharge  the 
force.  He  therefore  stopped  all  the  machinery  and 
retained  the  employees  at  full  wages,  in  return  for 
which  they  simply  kept  the  machinery  clean  and  in 
good  order.  In  the  four  months  before  the  end  of 
the  embargo  the  New  Lanark  workers  received  more 
than  X7,000  for  their  unemployed  time.  "  This  pro- 
ceeding won  the  confidence  and  the  hearts  of  the 
whole  population,  and  henceforward  I  had  no  ob- 
structions from  them  in  my  progress  of  reform." 


ROBERT  OWEN  THE  MANUFACTURER      51 

Owen  went  on  with  confidence  and  at  fuller  speed 
to  improve  the  moral  character  of  his  people.  He 
counteracted  their  temptation  to  thieving  by  devices 
which  rendered  it  impracticable  without  almost  im- 
mediate detection.  Daily  returns  were  made  to  him 
of  the  preceding  day's  business,  and  frequent  bal- 
ances. The  most  efficient  check  on  bad  conduct,  he 
thought,  was  his  "  silent  monitor."  This  was  "  a 
four-sided  piece  of  wood,  about  two  inches  long  and 
one  broad,  each  side  colored,  —  one  side  black, 
another  blue,  the  third  yellow,  and  the  fourth  white, 
tapered  at  the  top,  and  finished  with  wire  eyes,  to 
hang  upon  a  hook,  with  either  side  to  the  front." 
One  of  these  was  hung  near  each  employee,  and  the 
color  at  the  front  showed  his  conduct  during  the 
previous  day.  Bad  was  denoted  by  black,  No.  4 : 
indifferent,  by  blue.  No.  3  :  good  by  yellow.  No.  2 : 
and  excellent  by  white,  No.  1.  "  Books  of  character  " 
kept  a  two-months'  record  for  each  worker.  Right  of 
complaint  was  reserved  to  him  if  he  thought  injustice 
had  been  done  him  by  the  superintendent  of  the  de- 
partment who  regulated  the  "  monitor :  "  but  the  right 
was  very  rarely  exercised.  The  result  surpassed  all 
expectation.  "  At  the  commencement  .  .  .  the  great 
majority  were  black,  many  blue,  and  a  few  yellow : 
gradually  the  black  diminished,  and  were  succeeded 
by  the  blue,  and  the  blue  was  gradually  succeeded  by 
the  yeUow,  and  some,  but  at  first  very  few,  were 
white." 

Owen  proposed  in  his  Bill  for  regulating  the  hours 
of  work  in  mills  and  factories,  which  he  pressed  upon 
Parhament  in  1815,  that  the  regular  hours  in  miUs 
of  machinery  should  be  limited  to  twelve  per  day,  in- 


62  A  DIVIDEND  TO  LABOR 

eluding  one  hour  and  a  half  for  meals  ;  that  children 
should  not  be  employed  in  such  mills  until  ten  years 
old,  and  not  more  than  six  hours  a  day  until  twelve 
years  old :  and  that  no  children  should  be  admitted 
into  any  manufactory  "  until  they  can  read  and  write 
in  a  useful  manner,  understand  the  first  four  rules 
of  arithmetic,  and  the  girls  be  likewise  competent  to 
sew  their  common  garments  of  clothing."  This  was 
substantially  Owen's  procedure  at  New  Lanark.  He 
was  thus  practically  the  pioneer  of  the  ten  hour  day. 
Such  a  limitation  of  hours  and  such  care  for  the 
children  in  the  mills,  "  when  influenced  by  no  narrow 
mistaken  notions  of  immediate  self-interest,  but  con- 
sidered solely  in  a  national  view,  will,"  he  rightly  said, 
"  be  found  to  be  beneficial  to  the  child,  to  the  parent, 
to  the  employer,  and  to  the  country." 

Owen's  faith  in  education  was  of  the  strongest,  and 
his  active  and  ingenious  mind  soon  showed  him  that 
the  education  of  the  children  of  factory  operatives 
could  be  begun  much  earlier  than  usual,  to  the  great 
advantage  of  themselves  and  their  parents.  The 
homes  of  the  poor  are  "  altogether  unfit  for  the  train- 
ing of  young  children,  with  their  hmited  space  and 
accommodation  .  .  .  and  in  ninety-nine  cases  out  of  a 
hundred,  parents  are  altogether  ignorant  of  the  right 
method  of  treating  children,  and  their  own  children 
especially."  An  infant  school  was  the  logical  result 
of  such  reasoning,  a  school  where  character  could 
be  formed  from  a  very  early  period  imder  the  most 
favorable  conditions.  In  1809  Owen  began  work  on 
the  foundations  of  the  building  for  such  a  school, 
which  would  cost,  he  estimated,  about  five  thousand 
pounds :  the  subsequent  annual  outlay  would  be  con- 


ROBERT  OWEN  THE  MANUFACTURER      53 

siderable.  The  "  improved  character  of  the  children 
and  the  improved  condition  of  the  parents  "  would 
amply  repay  such  an  expenditure.  But,  naturally,  at 
this  period  in  the  infancy  of  manufacturing,  when  the 
main  chance,  a  good  return  for  capital,  was  foremost 
in  the  minds  of  employers,  Owen's  partners  did  not 
take  this  long  and  wise  view  of  a  problem  that  was 
to  endure  for  generations.  As  he  insisted  on  man- 
aging the  establishment  on  principles  which  appeared 
to  him  to  be  true,  and  through  the  practice  which  he 
understood  (in  his  own  words),  and  which  hitherto 
had  always  been  successful  by  confession  of  all  in- 
terested, they  accepted  Owen's  offer  of  eighty-four 
thousand  pounds  for  their  share  of  the  business  and 
withdrew.  The  firm  had  been  in  existence  ten  years  ; 
after  five  per  cent,  interest  had  been  paid,  the  profits 
were  sixty  thousand  pounds. 

Owen  would  naturally  have  associated  himself  with 
his  father-in-law,  as  he  was  obliged  to  seek  new  part- 
ners. But  Mr.  Dale  had  passed  away,  universally 
regretted,  and  by  no  one  more  than  by  Owen,  for  they 
had  become  very  warmly  attached  to  each  other.  Mr. 
Dale  had  such  an  admiration  for  the  improvements 
which  his  son-in-law  had  wrought  at  New  Lanark  that 
he  declared  publicly  that  he  never  would  have  parted 
with  the  mills  had  they  been  in  any  such  condition  in 
1799.  Each  of  the  two  men  had  a  thorough  respect 
for  the  genuine  manliness,  sincerity  and  kindliness  of 
the  other.  "  He  was  the  only  religious  man  I  ever 
knew,"  said  Owen,  "who  possessed  real  charity  for 
those  who  so  differed  from  him."  In  the  earlier 
months  of  their  friendship,  the  two  often  discussed  reli- 
gious and  theological  subjects,  with  entire  good  nature. 


54  A  DIVIDEND  TO  LABOR 

Mr.  Dale  would  close  with  the  kindly  remark,  which 
he  doubtless  knew  applied  also  to  himself,  "  Thou 
needest  be  very  right,  Kobert,  for  thou  art  very  posi- 
tive." 

The  "New  Lanark  Company,"  the  new  firm  now 
organized,  consisted  of  five  partners,  Owen  holding 
the  largest  share  of  the  capital.  Two  of  the  others 
were  sons-in-law  of  Mr.  Campbell  of  Zura,  a  near 
relative  of  Mrs.  Owen.  Discovering  that  Mr.  Camp- 
bell, some  time  before,  had  deposited  twenty  thousand 
pounds  with  Owen  in  his  business,  they  conceived  a 
great  enmity  to  him,  and  objected  to  aU  his  most 
characteristic  plans  —  to  the  improvements  for  the 
comfort  of  the  villagers,  to  the  hberal  scale  of  wages 
and  salaries,  and  especially  to  the  school  buildings. 
The  result  of  the  disagreement  was  a  dissolution  of 
the  partnership,  the  other  four  partners  insisting  on  a 
sale  of  the  works  by  auction.  They  industriously  cir- 
culated reports  to  the  effect  that  Owen's  management 
had  so  lowered  the  value  of  the  property  that  they 
woidd  be  only  too  happy  to  get  forty  thousand  pounds 
for  it.  Their  plain  object  was  to  depreciate  the  pro- 
perty before  the  sale  and  bid  it  in  far  below  its  value. 
When  questioned,  they  acknowledged  that  their  only 
objection  was  to  Owen's  "  visionary  schemes  of  edu- 
cation and  improvement  and  to  the  scale  of  wages." 
"They  imagined  an  ignorant  economy  to  be  better 
than  an  enlightened  and  liberal  treatment  of  the  peo- 
ple and  of  our  customers." 

The  story  of  the  manner  in  which  Owen,  now 
*'  completely  tired  of  partners  who  were  merely  trained 
to  buy  cheap  and  sell  dear,"  caused  these  deceitful 
associates  to  be  "  hoist  with  their  own  petard  "  is  very 


ROBERT  OWEN  THE  MANUFACTURER      65 

dramatic :  it  must  be  shortened  here  to  the  most  neces- 
sary particulars.  Owen  went  up  to  London  in  1813 
to  see  to  the  printing  of  his  four  essays  on  the  forma^ 
tion  of  character.  At  the  same  time  he  published  for 
private  circulation  a  pamphlet,  describing  his  estab- 
lishment and  his  methods  of  conducting  it  in  the  in- 
terests of  "  philanthropy  and  five  per  cent.,"  as  a  later 
generation  would  have  put  it.  Three  wealthy  Friends 
—  John  Walker,  Joseph  Foster  and  William  Allen  — 
took,  between  them,  five  shares  of  ten  thousand  pounds 
each  in  the  proposed  new  association  out  of  the  whole 
thirteen  (Owen  holding  five)  :  the  other  subscribers 
were  Jeremy  Bentham  (it  was  the  only  successful 
business  enterprise,  said  Sir  John  Bo  wring,  his  editor, 
in  which  Bentham  was  ever  engaged),  Joseph  Fox, 
and  Michael  Gibbs,  afterward  Lord  Mayor  of  Lon- 
don. The  contract  ran  that  all  surplus  gain  over 
five  per  cent,  should  be  "  freely  expended  for  the  edu- 
cation of  the  children  and  the  improvement  of  the 
work-people  at  New  Lanark,  and  for  the  general  im- 
provement of  the  condition  of  the  persons  employed 
in  manufactories."  Owen's  actual  partners,  ignorant 
of  these  protective  measures  taken  by  him,  invited  a 
large  party  of  their  business  friends  to  dine  with 
them  after  the  auction,  feeling  sure  of  purchasing  the 
property  themselves.  Owen  forced  them,  in  common 
decency,  to  fix  the  upset  price  at  £60,000.  (He  was 
empowered  by  his  new  partners  to  bid  X120,000,  if 
necessary.)  At  the  sale  Owen's  solicitor  bid  steadily 
.£100  higher  than  the  four  partners,  and  the  property 
was  knocked  down  to  him  at  X114,100.  The  dinner, 
quite  naturally,  passed  almost  in  silence,  as  "the 
spirits  of  the  principals  were  below  zero."     On  the 


56  A  DIVIDEND  TO  LABOR 

other  hand,  Owen  and  three  of  his  new  partners,  who 
had  come  to  Glasgow  incognito,  had  a  triumphal  pro- 
gress to  New  Lanark.  The  inhabitants  of  the  old 
and  the  new  towns  turned  out  en  masse,  and  drew 
the  carriage  containing  the  four  gentlemen  through 
both  places.  The  discomfiture  of  Owen's  former  part- 
ners was  completed  when  the  balance  sheet  of  the  four 
years'  connection  showed  a  net  profit,  after  allowing 
five  per  cent,  interest,  of  .£160,000! 

Owen  now  pushed  to  completion  his  "  institution 
for  the  formation  of  character,"  which  was  opened 
January  1,  1816.  This  was  the  first  infant  school 
in  Great  Britain,  and  the  sagacity  with  which  its 
founder  developed  its  methods  gives  him  a  high  place 
among  educational  reformers.  Children  were  received 
almost  as  early  as  they  could  walk.  Three  shillings  a 
year  was  the  fee  charged,  though  the  actual  expense 
of  the  education  given  was  about  two  pounds.  Owen 
considered  the  difference  "  amply  made  up  by  the  im- 
proved character  of  the  whole  population,  upon  whom 
the  school  had  a  powerful  influence  for  good."  No 
punishment  was  allowed,  and  the  young  children  were 
instructed  after  the  object-method  —  by  means  of 
things  themselves,  or  of  models  or  paintings  —  and  by 
familiar  conversation.  They  learned  to  dance  and 
sing  from  two  years  of  age  up,  and  mihtary  drill  was 
an  important  feature  of  the  course  later  on.  The 
children  were  kept  as  much  as  possible  in  the  open 
air  :  in  severe  weather  they  played  in  rooms  reserved 
for  the  purpose.  The  large  hall,  also  used  as  a  chapel, 
was  the  general  schoolroom  for  the  upper,  third, 
grade,  where  the  children  over  six  were  taught  read- 
ing, writing,  arithmetic,  sewing  and  knitting,  until 


ROBERT  OWEN  THE  MANUFACTURER      57 

they  were  ten  ;  no  child  could  enter  the  works  before 
that  age.  In  sununer,  excursions  for  the  study  of 
Nature  were  frequent.  After  school  hours  for  the 
children,  the  buildings  were  made  comfortable  for  the 
workpeople  who  wished  to  attend  evening  school  for 
two  hours :  that  his  employees  might  "  learn  any  of  the 
useful  arts  "  was  Owen's  comprehensive  aim,  as  stated 
in  his  opening  address.  Three  rooms  were  set  apart 
as  a  kind  of  club-house  for  the  employees  :  two  even- 
ings were  appointed  for  dancing  and  music :  occasional 
lectures  were  given  to  the  older  people  on  practical 
morals. 

Concurrently  with  these  philanthropies  which  con- 
cerned the  "  living  machinery,"  usually  so  much  neg- 
lected by  the  mill-owner,  Owen  brought  the  whole 
physical  machinery  of  the  establishment  into  the  best 
condition.  Though  his  plans  for  the  improvement  of  his 
workpeople  had  the  greatest  interest  for  him,  he  never 
ceased,  while  at  New  Lanark,  to  be  one  of  the  great 
cotton-spinners  of  Britain.  On  his  travels,  he  visited 
hundreds  of  factories  with  a  mind  equally  set  upon 
business  improvement  and  philanthropy.  The  old  and 
ill-arranged  machinery  at  home  was  replaced,  and  the 
new  rearranged.  Owen  devised  a  system  of  elevators : 
his  colored  "  telegraphs "  or  monitors  did  effective 
service,^  and  the  four  superintendents  of  departments 
were  admirably  faithful  and  capable  subordinates. 
The  mills,  the  village  with  the  150  acres  of  land 
aroimd  it,  and  the  schools,  all  ran  in  unison  "  with 
the  regularity  of   clock-work."     The  cashier  of  the 

^  Mr.  Sargant  thinks  that  this,  the  most  "  paternal "  feature  of 
Owen's  system,  was  prohahly  a  source  of  amusement  to  the  employees, 
who  were  willing  to  humor  him. 


68  A  DIVIDEND   TO  LABOR 

Bank  of  England,  visiting  New  Lanark,  thought  that 
what  he  saw  must  be  the  result  of  some  generations, 
and  he  was  astonished  to  learn  that  the  "  high  perfec- 
tion of  systematic  order  "  which  he  beheld  was  due  to 
one  man's  sixteen  years  of  determined  effort.  When- 
ever the  head  was  absent,  daily  reports  of  the  business 
were  sent  him  in  great  detail. 

Owen  had  now  become  a  famous  man.  His  "  Es- 
says" and  his  New  Lanark  institutions  gave  him  a 
world-wide  repute.  Bishops,  statesmen,  political  eco- 
nomists and  philanthropists  read  the  "  Essays  "  and 
discussed  their  ideas  with  the  author  on  terms  of 
respect  and  esteem.  Owen's  disinterested  efforts  to 
procure  legislation  for  shorter  hours  of  work  and  for 
the  regulation  of  child-labor  took  him  a  great  deal  to 
London.  New  Lanark  itself  became  a  potent  centre 
of  attraction,  especially  after  its  schools  were  fuUy 
developed.  Two  thousand  visitors  a  year  came  to  see 
for  themselves  this  "Happy  Valley"  with  its  model 
community  and  its  remarkable  schools.  The  Grand 
Duke  Nicholas,  afterward  the  Emperor  of  Russia,  was 
the  most  notable  of  these  visitors ;  but  princes,  ambas- 
sadors and  nobles,  bishops  and  clergy,  learned  men  of 
the  various  professions,  and  travelers  for  pleasure  or 
knowledge,  —  all  these  in  great  numbers  availed  them- 
selves of  Owen's  generous  hospitality  and  his  cheerful 
exhibition  of  his  entire  estabHshment.  A  lady  of  the 
highest  rank  of  the  nobility  said  with  tears  in  her 
eyes,  after  visiting  the  schools,  "  Mr.  Owen,  I  woidd 
give  any  money  if  my  children  could  be  made  like 
these."  The  Duke  of  Kent,  the  father  of  Queen 
Victoria,  was  Owen's  warm  and  constant  friend :  his 
sudden  death,  in  1820,  took  place  not  long  before  he 


ROBERT  OWEN  THE  MANUFACTURER      69 

was  to  make  a  visit  of  three  months  at  New  Lanark, 
with  his  wife  and  daughter. 

New  Lanark,  under  Owen's  control,  continued  for 
some  thirty  years  altogether  to  show  the  excellent 
results  of  his  wise  philanthropy.  The  result,  from  a 
financial  point  of  view,  was  that  none  of  the  partners 
accumulated  an  immense  fortune  from  the  investment, 
but  all  received  a  good  rate  of  interest  on  their  cap- 
ital. "  In  the  first  thirty  years  of  this  century,  the 
clear  profits,  after  paying  the  £7,000  of  gratuities  in 
1806,  and  the  expenses  of  benevolence,  amounted  to 
X10,000  a  year;  but  we  are  not  told  how  much  of 
this  accrued  before,  and  how  much  after  1814."  ^ 
This  was  an  average  of  more  than  7^  per  cent,  on 
the  capital  of  X130,000  which  Owen  and  his  third  set 
of  partners  had  invested  in  the  business. 

These  partners  at  no  time  complained  of  any  reduc- 
tion in  their  possible  profits  caused  by  Owen's  meth- 
ods. There  was  more  or  less  friction  between  him 
and  WiUiam  AUen  for  a  long  time,  however,  due 
largely  to  Allen's  bigoted  opposition  to  the  teaching 
of  music  and  dancing.  In  1824  Allen  so  far  prevailed 
that  it  was  agreed  that  the  company  should  no  longer 
provide  a  dancing-master,  and  that  nothing  in  the  way 
of  music  or  singing  should  be  taught  except  psalmody. 
The  genuine  benevolence  of  Owen's  partners  was 
shown  in  other  articles  of  their  agreement,  which  pro- 
vided for  more  houses,  an  ampler  supply  of  water,  a 
washing  apparatus,  an  asylum  for  the  sick  and  the 
aged,  and  a  savings-bank.  "  The  public  kitchen  was 
to  be  completed.  This  was  a  building  150  feet  by  40, 
with  kitchens  and  storerooms  on  the  ground  floor,  and 

*  Robert  Owen  and  His  Philosophy,  by  W.  L.  Sargant,  p.  217. 


60  A  DIVIDEND  TO  LABOR 

a  large  eating-room  above ;  at  one  end  was  a  gallery 
for  an  orchestra :  a  library,  with  lobbies,  occupied  the 
centre,  and  a  lecture  and  concert  room  of  the  same 
size  were  at  the  other  end  of  the  building."  The  in- 
tention was  to  "  furnish  a  dinner  at  a  fixed  price  to  all 
who  chose  to  come :  "  it  was  stated  that  four  or  five 
thousand  pounds  a  year  were  saved  to  the  people  by 
this  institution. 

Owen  himself,  during  the  preceding  years,  had  been 
becoming  more  and  more  of  a  socialist :  he  had  occu- 
pied himself  largely  with  long-continued  attempts  to 
procure  factory  legislation  in  the  interest  of  the 
working-people,  and  his  seK-confidence,  always  suffi- 
cient probably,  had  now  become  enormous.  He  gen- 
eralized hastily  from  his  favorable  experience  at  New 
Lanark  to  the  sure  success  of  a  universal  system  of 
communities  based  on  socialistic  principles.  These 
were  not,  in  fact,  the  product  of  a  rational  evolution, 
like  the  Scotch  village.  The  failure  of  several  social- 
ist communities,  including  New  Harmony,  in  Indiana, 
could  not  discourage  Owen,  however.  His  interest 
in  these  doubtful  schemes  of  general  social  regenera- 
tion, with  their  loose  hold  upon  reality,  had  probably 
distracted  his  attention  largely  from  New  Lanark,  as 
the  agreement  of  1824  woidd  seem  to  indicate.  In 
1829  he  retired  from  the  business  to  devote  himself 
largely  for  the  twenty-eight  remaining  years  of  his 
long  and  unselfish  life  to  a  picturesque  but  uniformly 
unsuccessful  socialistic  experimentation.  His  ardor 
and  generosity  were  as  great  as  ever,  but  the  fatal 
mark  of  impracticability  was  on  almost  all  his  humane 
endeavors. 

Owen  teUs  us,  to  return  to  New  Lanark,  that  the 


ROBERT  OWEN  THE  MANUFACTURER      61 

hours  of  work  were  increased  and  the  wages  reduced, 
at  once,  by  his  successors.  Wages  were  not  high,  as 
compared  with  those  paid  in  England,  but  they  had 
not  been  reduced  for  twenty-five  years,  not  even  in 
the  distressful  year  1819.  In  that  year  one  of  the 
mills  was  burned,  but  work  was  found  for  the  opera- 
tives employed  in  it,  and  none  were  turned  away. 
In  1854  Owen  coiUd  praise  the  management  of  his 
successor,  and  say  that  "  the  village  had  not  become 
a  mere  money-getting  place." 

Owen's  life,  after  his  connection  with  New  Lanark 
closed,  does  not  concern  us  here.  That  fine  establish- 
ment was  not  conducted  on  socialistic  lines.  The  one 
principle  governing  it  was  that  the  proprietors  were 
satisfied  to  receive  a  moderate  return  on  their  capital 
(five  per  cent.,  according  to  the  contract,  and  more 
than  that,  in  fact,  as  the  mills  were  prosperous),  in 
addition  to  the  salary  of  one  thousand  pounds  paid  to 
the  manager.  A  large  part,  if  not  the  whole,  of  the 
remaining  profits  they  wished  to  see  go  to  the  benefit 
of  the  workpeople  in  the  form  of  what  in  later  years 
would  be  styled  "  collective  profit  sharing."  The  re- 
sult has  always  been  considered  one  of  the  most  cheer- 
ing records  in  the  history  of  English  labor.  What  the 
partners  resigned  of  possible  profits  built  up  the  insti- 
tutions which  we  have  described,  and  made  New 
Lanark  for  thirty  years  a  model  manufacturing  vil- 
lage. Few  will  be  foimd  to  doubt  to-day  that  this 
distribution  of  the  earnings  of  the  enterprise  promoted 
the  general  weKare  far  more  effectually  than  the  usual 
method  followed  outside  of  New  Lanark.  From  this 
point  of  view  it  may  well  seem  a  misfortune  that 
Robert  Owen  did  not  confine  himself  to  the  thorough 


62  A  DIVIDEND  TO  LABOR 

development  of  the  plans  which  occupied  him  at  home 
until  1815,  and  the  advocacy  of  their  general  exten- 
sion to  other  manufactures.  The  influence  of  such 
an  example,  unconnected  in  the  public  mind  with 
impracticable  schemes  of  socialism,  might  in  time  have 
been  very  great. 

However  this  may  be,  Robert  Owen,  in  this  earlier 
part  of  his  Ufe,  was  a  generous,  sagacious  and  devoted 
employer  of  labor,  who  struck  out  a  path  in  which 
thousands  of  other  employers  would  do  wisely  and 
weU  to  follow  him.  Devising  such  fruitfid  measures 
in  the  early  years  of  the  factory  system,  he  is,  and 
will  always  remain,  a  master-type  of  the  far-seeing 
and  philanthropic  captains  of  industry. 


PART  n 

AN  INDIRECT  DIVIDEND  TO  LABOR 

CHAPTER  IV 
WELFARE-INSTITUTIONS   IN   GERMANY 

After  the  convenient  fashion  of  their  language, 
the  Germans  name  the  various  arrangements  and  in- 
stitutions which  an  employer  devises  for  the  protec- 
tion and  comfort  of  his  workpeople  Wohlfahrtsein- 
richtungen.  Dr.  Post's  two  large  volumes  on  such 
methods  and  institutions  bear  the  explanatory  title, 
"Examples  of  personal  care  for  their  workers  by 
employers."  France  and  Germany  are  the  two  mod- 
ern countries  in  which  such  interest  has  been  most 
frequently  and  thoroughly  shown. 

The  political  history  and  constitution  of  Germany 
and  certain  traits  of  the  national  character  have 
favored  the  large  manifestation  among  employers  of 
the  patriarchal  spirit  which  looks  upon  a  body  of 
workpeople  as  a  family  and  the  head  of  the  industry 
as  a  true  hausvatcr.  The  stability  of  industrial 
relations  tends  greatly  to  increase  this  family  feeling, 
which  in  itself  springs  from  some  of  the  best  quahties 
of  the  Teutonic  character.  The  independent  spirit  of 
democracy  and  the  socialistic  trend,  so  closely  con- 
nected with  it  in  Germany,  have  indeed  much  weak- 
ened the  older  feelings  of  respect  and  affection  with 


64  A  DIVIDEND  TO  LABOR 

which  the  German  workman  often  regarded  his  em- 
ployer, and  "  paternalism  "  is  coming  to  be  viewed  by 
him  with  a  jealous  eye.  The  change  has  not,  however, 
gone  so  far  as  to  take  from  Germany  her  high  rank 
in  this  direction. 

I  shall  write  of  these  welfare-institutions  descrip- 
tively, showing  them  as  they  are,  with  no  intention 
of  recommending  them  in  their  entirety  as  models 
for  imitation  by  an  English  or  American  employer. 
Paternalism,  in  any  rightfully  objectionable  sense  of 
the  word,  has  more  reference  to  some  of  the  methods 
of  administering  an  insurance  or  pension  fund,  for 
instance,  than  to  such  a  fund  in  itself.  Nearly  if  not 
quite  all  of  the  institutions  devised  by  German  em- 
ployers could  be  profitably  adapted  to  Anglo-Saxon 
uses  by  giving  the  workman  a  larger  share,  if  not  the 
whole  of  the  after  control  of  them  when  once  created.^ 
Viewed  in  this  light,  the  most  paternal  industrial 
institutions  of  Germany  are  highly  deserving  of  con- 
sideration by  other  countries.  To  many  cases  of 
interest  in  themselves  I  do  not,  however,  allude :  but 
the  scale  on  which  a  business  is  conducted  has  not 
influenced  the  choice  of  instances :  I  have  sought 
variety  in  unity. 

The  greatest  establishment  which  industrial  Ger- 
many has  to  show  is  perhaps  also  the  "  largest  in  the 
world"  (to  use  a  phrase  dear  to  American  lips),  at 
least  in  its  own  line  of  work.  The  cast-steel  works 
of  the  firm  Fried.  EZrupp  at  Essen-on-Ruhr  —  with 
the  affiliated  steel  works  at  Annen  and  Buckau,  the 
four  blast  furnace  plants  near  Duisberg,  Neuwied, 
Engers,  and  Rheinhausen,  the  iron  works  near  Sayn, 
^  This  is  notably  the  tendency  in  France. 


WELFARE-INSTITUTIONS  IN  GERMANY      65 

tlie  numerous  coal  and  iron  mines  in  Germany  and 
Spain,  the  clay  and  sand  pits  and  the  quarries,  the  three 
ocean  steamers,  and  the  latest  acquisition  of  the  firm, 
the  Germania  Shipbuilding  and  Engineering  Com- 
pany of  Berlin  and  Kiel — employed  in  1898  the 
immense  number  of  40,253  persons.^ 

The  Essen  works,  a  city  in  themselves,  manufac- 
ture crucible  steel,  Martin  (open  hearth)  steel  and 
castings  of  these  two  kinds ;  puddled  steel  (MUano- 
and-Bamboo  steel)  ;  Bessemer  steel ;  various  alloys  of 
steel  with  tungsten,  nickel,  chrome  and  molybdeniim ; 
cast-iron,  wrought-iron  and  bronze.  The  specialty  of 
the  works  in  manufactured  articles  is,  as  all  the  world 
knows,  war  material  for  land  and  sea.  Cannon  of 
all  kinds  and  all  calibres,  single  or  in  complete  bat- 
teries ;  projectiles  of  many  varieties  :  rifle  barrels  and 
armor  plates  are  the  principal  output.  The  industrial 
material  manufactured  embraces  a  large  variety  of 
iron  and  steel  work  for  railways,  from  the  rails  them- 
selves up  to  complete  portable  plants ;  plates,  cylin- 
ders, propellers  and  other  structural  parts  for  ships : 
parts  of  all  kinds  of  engines :  sheet  and  roll  steel, 
and  sheet  iron,  and  other  articles  "  too  numerous  to 
mention." 

Passing  by  the  1,600  furnaces,  the  113  steam 
hammers,  the  458  steam-engines,  and  the  467  cranes, 
with  the  37^  miles  of  driving  belts  of  the  colossal 
establishment  at  Essen,  one  may  mention  that,  in  the 

^  These  figures  axe  taken  from  the  little  pamphlet  of  Statistical 
Data  issued  by  the  firm  for  private  circulation,  and  revised  since  the 
General  Census  of  July  1,  1898.  At  Essen  there  were  employed 
23,397  persons  :  at  Buckau,  3,582 :  at  the  Germania  Works,  2,651 :  in 
the  mines,  the  iron  works,  the  proving  ground  near  Meppen  and 
elsewhere,  10,023. 


66  A  DIVIDEND  TO  LABOR 

yeax  1895-96,  752,505  tons  of  coal  and  coke  were  con- 
sumed, the  output  of  the  firm's  own  collieries  aver- 
aging some  3,500  tons  per  day,  and  about  1,400  tons 
of  iron  ore  being  smelted  each  day  from  their  own 
mines  :  about  as  much  water  was  used  in  1894-95  as 
by  the  city  of  Dresden,  and  more  gas  than  by  Diissel- 
dorf.  The  works'  railway  system  includes  over  34 
miles  of  standard  gauge  track  with  690  cars,  and 
some  26  miles  of  narrow  gauge  with  709  cars.  An 
elaborate  fire  department  extinguished  in  the  years 
1886-1890  no  less  than  768  fires.  Of  the  871  acres 
belonging  to  Fried.  Krupp  in  Essen  and  the  sur- 
rounding parishes,  over  126  were  built  upon. 

The  welfare-institutions  of  the  Fried.  Krupp  firm 
are  on  a  scale  corresponding  to  the  magnitude  of  its 
products.  They  are  described  in  a  volume  published 
by  the  firm  :  the  description  and  the  various  bodies  of 
rules  and  regulations  fill  nearly  three  hundred  octavo 
pages.  It  is  a  book  as  imique  as  the  famous  5,000 
ton  hydraulic  press  at  Essen.  It  naturally  begins 
with  the  large  provision  that  the  firm  has  made  for 
housing  thousands  of  its  employees.^  To  assist  them 
in  acquiring  homes  of  their  own,  Herr  F.  A.  Krupp 
established  in  1889  a  loan  fund  of  500,000  m. 
($119,000).  All  employee  earning  less  than  3,000  m. 
($714)  could  borrow  money  to  build  a  home  of  his 
own  at  three  per  cent,  interest ;  the  loan  must  be  re- 
paid in  not  more  than  twenty-five  annual  installments 
which  were  not  much  larger    than    the    usual    rent. 

^  See,  beside  Dr.  Post's  volume,  the  admirable  and  exhaustive 
"  Report  on  the  Housing  of  the  Working  People "  of  numerous 
countries  made  by  Dr.  E.  R.  L.  Gould  to  the  U.  S.  Commissioner  of 
Labor  (Eighth  Special  Report,  1895),  pp.  384-387. 


WELFARE-INSTITUTIONS  IN  GERMANY      67 

The  firm  furnished  the  services  of  the  architect  free. 
In  the  first  four  years  of  the  operation  of  this  fund 
seventy  houses  were  thus  acquired. 

The  building  and  renting  of  houses  by  the  firm  is 
a  matter  of  much  greater  size.  In  1894,  out  of  the 
whole  number  of  people  employed  at  the  Essen 
works,  and  their  families  (94,752  persons),  there 
were  living  in  houses  owned  by  the  firm  (3,659  in 
1891),  25,828  persons.  The  firm  began  to  build  on 
a  considerable  scale  in  1872 :  the  six  separate  settle- 
ments, in  the  neighborhood  of  Essen,  are  called 
colonies.  The  largest  of  these  is  Kronenberg,  with 
a  population  of  7,856  in  1892.  The  62  acres  of  this 
colony  are  occupied  by  226  neat  three-story  hous.es  in 
barrack  style,  of  stone  and  brick,  with  a  church,  school- 
buildings,  post-office,  stores,  market-place,  a  library, 
a  large  hall,  and  smaller  assembly  rooms,  and  a  central 
park.  The  streets  are  well  shaded  with  trees  and  the 
houses  have  patches  for  gardening  and  clothes-drying. 
Other  colonies  are  not  so  well  provided,  but  the 
Colony  Altenhof,  for  invalid  and  retired  workmen, 
presents  a  very  attractive  appearance.  The  firm  is 
content  with  a  net  income  of  a  little  over  two  per 
cent,  on  its  investment  of  some  three  millions  of 
dollars  in  this  direction.  "The  rented  houses  are 
extremely  popular,"  says  Dr.  Gould,  and  a  seniority 
of  ten  years'  service  is  usually  required  of  a  tenant, 
because  of  the  many  applications :  the  regulations  are 
strict:  water  and  gas  are  supplied  to  every  house. 
The  Freistadt  Barracks  is  a  massive  building  erected 
by  the  firm  as  a  lodging-house  for  1,200  men,  and  pro- 
vided with  a  restaurant  and  reading-room :  a  smaller 
house  accommodates  eighty  persons.  The  manage- 
ment is  of  military  strictness. 


68  A  DIVIDEND  TO  LABOR 

The  Krupp  firm  supports  fifty-one  stores  in  Essen 
and  the  colonies,  at  which  supplies  of  all  things  needed 
by  its  employees  for  housekeeping  and  personal  use 
can  be  obtained  for  cash:  the  articles  kept  are  in- 
variably of  good  quality.  The  administration  of 
these  stores  is  in  the  hands  of  the  firm,  but  the 
advantages  to  the  workmen  in  the  quality  and  cheap- 
ness of  goods  are  those  usually  gained  by  the  co- 
operative store ;  the  profits  come  back  to  them  in  the 
shape  of  a  rebate  at  the  end  of  the  year.  The  Cen- 
tral Store  is  a  large  three-story  building,  stocked  with 
a  great  variety  of  goods.  Besides  this  there  are  two 
slaughter-houses,  a  flour-miU,  two  bakeries,  an  ice 
factory,  a  laundry,  two  tailor  shops,  a  brush  factory,^ 
a  paper  bag  factory,  and  a  shoe  factory,  with  seven 
restaurants  and  two  coffee-houses. 

The  restaurants  have  gardens  connected  with  them, 
and  some  have  bowling  alleys.  The  restaurant  in  the 
Kronenberg  colony  has  appertaining  to  it  the  large 
hall  already  mentioned,  seating  about  1,500  persons. 
It  is  used  by  the  different  Vereins  of  the  workmen 
for  their  business  meetings  and  their  festivals.  In 
the  winter  months  the  company  of  the  Essen  Stadt- 
Theatre  gives  a  play  once  a  fortnight.  The  con- 
sumption of  beer  in  1890  was  1,424,539  1. 

The  general  sanitary  conditions  of  the  Essen  works 
are  under  the  superintendence  of  the  chief  physician 
of  the  Hospital.  He  keeps  the  mortality  records  for 
the  large  population,  and  on  the  basis  of  these  makes 
his  recommendations  of  special  measures  to  the  Sani- 
tary Commission  composed  of  doctors  and  overseers 

*  The  management  employs  half-invalids  as  much  as  possible  in 
making  objects  for  sale^  like  brushes. 


WELFARE-INSTITUTIONS  IN  GERMANY     69 

belonging  to  the  works.  In  1890  one  workman  out 
of  a  hundred  died.  For  the  disposal  of  household  sew- 
age the  barrel  system  is  in  use,  and  the  disinfecting 
apparatus  is  ample.  Some  kind  of  facilities  for  bathing 
is  provided  by  the  firm  in  nearly  all  its  different  works. 
At  Essen  a  bath-house  was  erected  in  1874  containing 
seven  bath-rooms,  each  having  a  tub,  suppUed  with 
hot  and  cold  water,  and  a  steam-bath  for  six  persons ; 
the  price  of  a  tub-bath  is  ten  to  fifteen  pfennige,  of  a 
steam-bath  one  mark:  the  families  of  workmen  can 
enjoy  this  privilege.  Shower-baths  were  introduced 
later,  with  success.  At  the  two  Hannover  mines  a 
bath-house  with  twenty-eight  shower-baths  was  built 
in  1890  at  an  expense  of  20,000  m. ;  at  this  some 
1,100  miners  can  have  a  free  bath  each  day.  At  Essen 
warm  baths  were  taken  by  4,231  well  persons  and 
2,260  sick  persons  La  the  year  ending  June  30,  1891. 
The  Essen  Steel  Works  had  a  sick  and  burial 
fund,  after  1853,  which  developed  a  pension  fund : 
this  had  to  be  severed  from  it  in  1885.  The  Sick 
Fund  is  much  more  liberal  in  its  aid  than  such  insti- 
tutions usually  are :  men  who  have  served  over  five 
years  may  remain  twenty-six  weeks  on  the  list.  The 
firm  contracts  with  sixteen  physicians:  the  patient 
may  choose  his  own  doctor :  a  physician  examines  each 
employee  on  his  entrance  to  the  works.  Helpers  are 
always  ready,  day  or  night,  with  the  needful  apparatus 
for  cases  of  accident.  A  fund  for  the  relief  of  sick- 
ness at  home  was  endowed  with  6,000  m.  in  1879,  and 
replaced  later  with  a  yearly  contribution  of  3,000  m., 
and  the  interest  on  a  later  endowment  of  40,000  m. 
Two  "  Controllers "  have  the  supervision  of  the  sick 
at  home,  visiting  them  and  giving  necessary  assistance. 


70  A  DIVIDEND  TO  LABOR 

Every  member  of  the  Sick  Fund,  by  contributing  5  m. 
a  year,  secures  the  service  of  a  physician  for  such 
members  of  his  family  as  are  not  legally  entitled  to 
belong  to  the  fund.  The  Arbeiterstiftung  (to  be 
described  soon)  advances  some  1,200  m.  a  year  for  this 
purpose.  The  firm  supplies  the  service  of  a  sj)ecialist 
for  diseases  of  women,  free  of  cost :  medicines  are  fur- 
nished to  women  and  children  at  a  reduced  rate. 

The  Krupp  Hospital  at  Essen  served  originally  as 
barracks  for  the  care  of  the  wounded  in  the  Franco- 
Prussian  war  of  1870  :  they  were  given  for  hospital 
purposes  for  the  firm's  employees  in  1872.  In  1881 
two  new  pavilions  for  women  and  children  were  added 
to  the  older  three  for  men :  each  pavilion  contains 
thirty  beds.  From  May  1,  1872,  to  June  30,  1891, 
there  were  treated  14,134  workpeople ;  in  the  year 
ending  July  1,1890,  there  was  an  average  of  eighty-five 
patients  under  treatment.  In  its  other  works  the  firm 
has  no  special  hospitals,  but  it  contributes  to  the  hos- 
pitals of  the  neighboring  community.  For  epidemic 
outbreaks  the  firm  is  prepared  with  a  special  hospital 
(^LazareiK)  of  six  barracks  lying  north  of  Essen,  and 
a  smaller  one  at  Altendorf ,  south  of  that  city. 

When  the  pension  and  sick  funds  of  the  Krupp 
firm  were  separated  in  1883,  the  new  Pensiou  Fund 
received  the  entire  capital  of  the  double  fund  except 
10,000  m.  allotted  to  the  new  sick  fimd.  The  firm 
contributed,  annually,  half  as  much  as  the  sum  coming 
from  the  employees,  until  1891 :  since  then  it  has 
contributed  as  much  as  they  do.  In  1890,  312  men, 
357  widows,  and  35  orphans,  and  15  men  on  a  liaK- 
pension  received  240,810  m.  The  balance  of  the  fund 
from  the  preceding  year  was  2,208,851  m.     The  yearly 


WELFARE-INSTITUTIONS  IN  GERMANY     71 

contribution  of  the  firm  is  now  some  240,000  m. 
The  number  of  persons  in  1891  who  had  reached  the 
age  qualifying  one  to  receive  a  pension  was  more  than 
3,000.  The  size  of  the  pension  for  an  employee  earn- 
ing 1,200  m.,  paid  by  the  works  and  the  State,  varies 
from  600  m.  after  20  years  of  service  to  1,030  m. 
after  40  years. 

In  1890  Herr  F.  A.  Krupp  founded  a  similar  fimd 
for  the  officials  (Beamte)  of  the  firm,  with  a  gift  of 
500,000  m.  All  employees  are  qualified  who  receive 
more  than  2,000  m.  a  year  ;  the  frnid  had  increased  to 
1,450,000  m.  by  the  1st  of  July,  1891.  The  firm  deter- 
mined  in  1890  to  insure  the  same  class  of  persons 
against  accidents:  the  law  of  1884  did  not  apply  to 
them.  In  case  of  death  resulting  from  the  accident, 
the  family  of  the  deceased  receives  his  full  pay  for  the 
month  in  which  he  died,  and  for  the  two  months  fol- 
lowing, and  a  certain  percentage  for  the  widow  and 
for  each  child  thereafter,  which,  altogether,  may  not 
exceed  sixty  per  cent,  of  the  salary  paid.  In  case  of 
permanent  injury  resulting,  the  insured  receives  full 
pay  while  he  is  recovering,  and  after  recovery  an 
allowance  which  may  run  as  high  as  two  thirds, 
according  to  the  nature  of  the  injury.  In  order  that 
no  class  of  old  people  might  suffer  from  the  lack  of 
application  of  the  letter  of  the  pension-fund  regula- 
tion of  1884,  the  firm  pays  sums  in  lieu  of  pensions 
to  widows  whose  husbands  died  in  consequence  of  an 
accident  while  at  work  before  the  accident-insurance 
law  took  effect,  and  to  men  who  had  become  incapaci- 
tated for  work  before  the  same  date.  This  form  of 
aid  required,  in  1890,  50,732  m. 

In  1877  a  life-insurance  association  was  founded : 


72  A  DIVIDEND  TO  LABOR 

Herr  A.  Knipp  presented  to  it  50,000  m.,  and  later 
4,000  m.  more :  the  firm  contributes,  every  quarter,  a 
sum  equal  to  half  the  premiimis  paid.  On  account  of 
agreements  made  by  the  firm  with  eight  life-insurance 
companies,  peculiar  advantages  are  secured  to  the 
person  insured :  the  choice  of  the  company  is  left  to 
him.  The  firm  takes  pains  to  inform  all  employees 
concerning  insurance,  and  it  does  all  the  bookkeeping 
for  the  association,  which  thus  has  no  running  ex- 
penses. At  the  end  of  1890  the  entire  amount  in- 
sured was  3,628,878  m.,  in  2,190  policies,  and  564 
policies  had  fallen  due  and  been  paid  since  the  for- 
mation of  the  association,  amounting  to  711,564  m. 

A  foundation  that  has  for  its  general  object  the 
supplementing  of  the  other  philanthropies  of  the  es- 
tablishment by  gifts  in  case  of  special  need  is  another 
admirable  feature  at  the  Essen  works.  How  it  sup- 
plies that  flexibility  and  adaptation  to  individual  cir- 
cumstances too  often  lacking  where  charity  is  abun- 
dant but  mechanical  will  appear  from  the  regulations. 
These  specify  seven  distinct  classes  of  persons  who 
may  be  relieved  from  this  Arbeiterstiftung.  For 
instance,  in  case  of  long  and  severe  sickness  of  a 
workman,  if  the  relief  from  the  sick  fund  appears  to 
be  insufficient,  the  management  (of  whose  five  mem- 
bers two  are  workmen)  wiU  supply  what  is  needed. 
Pensioners  who  need  medicines  and  medical  attend- 
ance are  another  class  to  whom  help  from  the  Stif tung 
is  given.  Herr  F.  A.  Krupp  established  this  charity 
with  a  gift  of  one  million  marks,  in  accordance  with 
the  wish  of  his  father,  in  1887.  The  managers  of 
this  fund  have  also  authority  to  use  the  interest  —  or, 
in  special  cases,  a  part  of  the  capital  —  in  setting  up 


WELFARE-INSTITUTIONS  IN  GERMANY       73 

new  institutions  for  the  bodily  or  intellectual  welfare 
of  the  employees. 

A  Stiftung  with  somewhat  similar  aims  was  also 
founded  by  Herr  F.  A.  Krupp  in  1887  as  a  memorial 
to  his  father,  for  the  benefit  of  the  city  of  Essen.  The 
managers  of  this  fund  of  half  a  million  marks  can  use 
the  interest  to  promote  any  vmdertakings  which,  directly 
or  indirectly,  aim  at  the  material  or  moral  elevation 
of  the  lower  classes.  Existing  institutions  may  be 
aided,  or  individuals  be  assisted  who  are  in  great  need, 
or  who  desire  superior  education  in  science,  art  or 
industry.  No  distinction  of  creed  shall  be  made.  The 
first  plan  adopted  by  the  managers  was  the  building 
of  houses  for  workmen :  a  considerable  number  had 
been  erected  by  1891. 

The  interest  of  the  Krupp  firm  in  education  is 
shown  in  numerous  ways.  In  the  Altendorf  colony 
the  firm  has  built  schoolhouses  and  defrayed  all  the 
expenses  of  free  instruction  for  some  1,100  pupils 
(1891),  of  whom  60  per  cent,  were  evangelical  and 
40  per  cent.  Catholic :  the  schools  have  libraries  and 
botanic  gardens.  Fried.  Krupp  also  provides  for  the 
Altendorf  community  school  -  buildings  with  twenty 
rooms,  free  of  charge.  The  firm  practices  the  same 
generous  educational  policy  in  its  other  works  and 
mines.  In  Essen  and  in  Altendorf  it  substantially 
supports  two  secondary  (Fortbildung)  schools  with 
1,200  scholars,  who  (for  a  moderate  fee)  receive 
instruction  in  drawing,  natural  science,  technical 
branches,  and  some  modern  language. 

In  1875  the  firm  opened  an  Industrial  School  for 
women  and  girls,  where  they  could  learn  the  art  of 
sewing,  dressmaking   and   embroidery,  not  only  for 


74  A  DIVIDEND   TO  LABOR 

household  purposes,  but  also  as  a  means  of  livelihood : 
in  1890  the  average  number  in  attendance  was  186. 
Four  schools  in  different  colonies  gave  instruction  in 
1891  to  some  two  thousand  children  of  school  age  in 
sewing  and  knitting.  The  fee  charged  is,  in  case  of 
faithful  attendance,  returned  to  the  pupils  in  the  form 
of  a  savings-bank  deposit.  A  housekeeping  school, 
opened  in  a  special  building  in  1889,  has  a  course  of 
instruction  four  months  long,  in  cooking  and  other 
household  arts :  it  has  twenty-four  girl-pupils  over 
fom'teen  years  of  age,  of  whom  twelve  leave  the  school 
every  two  months :  the  fee  is  small,  and  often  remitted. 

The  firm  has  always  given  close  attention  to  the 
education  of  its  apprentices,  of  whom  there  were  361 
in  1891.  They  are  required  to  attend  the  secondary 
schools  mentioned  above.  In  1890  Herr  F.  A.  Krupp 
estabhshed  a  yearly  contribution  of  12,000  m.  (^/Sti- 
pendienstiftung^,  which  shoidd  be  applied  toward 
the  higher  technical  education  of  sons  of  overseers 
and  workmen  who  had  distinguished  themselves  by 
their  good  conduct  and  their  capacity.  A  club-house 
(casino)  for  the  officials  (Beamte)  may  be  men- 
tioned here.  The  budding,  erected  in  1890,  has  a 
reading-room  (with  fifty-fonr  home  and  foreign  news- 
papers and  magazines,  and  a  number  of  books  of 
general  interest),  a  restaurant  and  a  bowling-alley;  a 
garden  is  attached.  Herr  Krupp  bears  all  the  ordinary 
expenses  of  the  Casino. 

Women  and  children  are  not  employed  in  the 
Krupp  works.  For  workmen  who  live  at  a  considera- 
ble distance  two  dining-halls  have  been  provided. 
Hot  coffee  and  a  milk-roll  can  be  obtained  at  cost  for 
one  hour  in  the  morning  and  one  in  the  evening :  hot- 


WELFARE-INSTITUTIONS  IN  GERMANY      75 

water  stations  supply  those  who  wish  to  make  their 
own  coffee.  In  the  hottest  months,  cold  coffee  and 
trinkwasseressenz  can  be  procured  by  the  workmen. 
Year  in  and  year  out  a  light  brandy  ration  (one  eighth 
of  a  litre)  is  supplied  free ;  the  expense  of  this  for 
the  year  1890-91  was  about  19,000  m.  In  the  same 
year  the  firm  spent  over  69,000  m.  on  clothing  for 
workmen  exposed  to  the  climate  or  to  the  furnaces. 
The  firm  frequently  assists  with  money  contributions 
a  great  variety  of  educational  and  religious  institu- 
tions under  the  control  of  third  parties,  which  pro- 
mote the  weKare  of  their  employees. 

Facilities  for  savings  being  ample  In  Essen  and  the 
neighborhood,  the  Krupp  firm  has  established  no  sav- 
ings fund ;  but,  in  several  minor  ways,  it  brings  the 
above  facilities  to  the  attention  of  the  employees,  and 
assists  them  to  make  deposits.  In  the  schools  it  has 
various  regulations  which  tend  to  encourage  the  saving 
habit.  It  will  receive  from  any  one  belonging  to  the 
works  sums  above  200  m.  a  month,  on  which  it  wiU 
pay  five  per  cent,  interest :  this  privilege  has  been 
largely  enjoyed. 

The  fame  of  the  Krupp  works  at  Essen  has  gone 
round  the  earth,  though  the  elaborate  nature  of  their 
philanthropic  institutions  is  not  so  well  known.  An 
instance  of  such  institutions  on  something  more  like 
the  usual  scale  of  manufactures,  but  carried  on  with 
equal  regard  for  the  workman,  is  afforded  by 
D.  Peters  &  Co.,  weavers  of  Neviges  and  Elberfeld. 
The  most  important  of  their  plans  is  that  for  housing 
the  five  hundred  employees  (women  are  employed, 
but  not  after  they  become  mothers).  On  the  slopes 
of  the  hills  surrounding  the  works  the  company  has 


76  A   DIVIDEND   TO  LABOR 

built  model  dwelling-houses  and  has  acquired  others, 
seventy-seven  in  all,  of  which  fifty-two,  valued  at 
160,135  m.,  have  been  sold  to  workmen.  Some 
73  per  cent,  of  the  lot  on  which  the  brick  house, 
one  and  a  half  stories  high,  is  built  is  open  space, 
at  the  side  and  rear,  and  is  used  as  a  vegetable  garden 
with  fruit  trees. 

"  Rents  are  fixed  at  8  per  cent,  of  the  value  of  the 
house,  minus  20  per  cent,  of  the  annual  payments. 
.  .  .  The  rental  includes  annual  instaUments  paid  by 
occupants,  who  are  obliged  to  become  purchasers. 
Eight  per  cent,  of  the  value  of  the  house  is  paid  upon 
assuming  possession,  and  after  that  8  per  cent. 
annually  imtil  the  property  is  paid  for.  As  5  per 
cent,  of  this  is  counted  as  rent,  the  houses  will  be 
fully  paid  for  in  seventeen  years.  .  .  .  When  the 
head  of  the  family  has  served  for  one  year  and  over 
in  the  employ  of  the  company,  15  per  cent,  of 
the  amount  annually  due  is  deducted  ;  when  he  has 
served  five  years  and  over,  20  per  cent.  ;  when  he  has 
served  ten  years  and  over,  25  per  cent.  For  every 
child  who  has  been  in  the  employ  of  the  company  one 
year  and  over,  5  per  cent,  is  deducted.  In  no  case, 
however,  can  the  total  of  deductions  reach  beyond  40 
per  cent.  When  the  head  of  the  family  is  not  in  the 
employ  of  the  company,  but  two  or  more  children 
are,  a  deduction  is  also  granted,  but  the  amount  is 
fixed  in  each  individual  case.  The  company  con- 
tributes toward  the  cost  of  maintenance  and  repairs. 
Payments  of  rent  are  deducted  from  weekly  wages, 
but  carried  quarterly  on  the  books.  .  .  .  There  is  no 
clause  giving  the  proprietor  the  right  to  summarily 
eject  tenants  in  case  of  strikes  or  leaving  employment. 


WELFARE-INSTITUTIONS  IN  GERMANY      77 

.  .  .  As  a  rule,  tenancy  is  permanent."  ^  These 
houses  are  of  varied  architecture  :  they  are  all  within 
a  half  mile  of  the  mills :  they  are  well  kept,  the 
garden  spaces  are  cultivated,  and,  with  the  park  near 
by,  the  whole  settlement  makes  a  very  happy  impres- 
sion on  the  visitor.  The  firm  hope  to  make  room  in 
the  same  way  for  perhaps  the  larger  part  of  their 
several  hundred  employees,  and  for  this  purpose  they 
have  acquired  more  land  in  the  vicinity. 

For  purposes  of  the  culture  and  amusement  of  their 
force,  the  firm  built  in  1883  and  enlarged  in  1897  a 
kind  of  club-house  (Stiftung)  called  "  Wohlfahrt " 
(Benefit).  This  is  situated  in  the  park  near  the  mills, 
and  nearer  the  home  of  the  head  of  the  firm,  and  in 
similar  architectual  style :  it  stands  between  Herr 
Peters'  house  and  the  Arbeiterkolonie  we  have  been 
describing.  Of  very  pleasing  construction,  it  con- 
tains a  cooking  and  housekeeping  school  for  girls 
and  women,  "  a  manual  training  school  for  boys  in 
which  card-board  work,  modeling,  carpentery,  turn- 
ing and  wood-carving  are  features  of  instruction,  a 
kindergarten,  a  hall  for  children's  games,  a  sewing 
school  for  girls,  a  large  haU  used  for  reading,  musical 
and  singing  societies,  and  a  reading-room  with  a 
library  adjoining."  Instruction  is  given  by  clerks  of 
the  miUs  in  labor-hours.  The  situation  gives  this 
building  a  fine  view,  and  the  terraces  and  groves  of 
the  Peters'  park  supply  room  for  the  open-air  festi- 
vals of  the  workmen  and  play-grounds  for  the  chil- 
dren :  the  children  of  the  kindergarten  (where  Herr 
Peters'  daughter  has  been  superintendent)  cultivate 
small  flower  and  vegetable  beds.  The  "  Wohlfahrt  " 
*  My  quotations  are  from  Dr.  Gould's  Report,  pp.  387-389. 


78  A  DIVIDEND  TO  LABOR 

cost  35,000  m.  and  the  yearly  expenses  are  from 
2,000  to  3,000  m.  A  bath-house  was  erected  in  1896, 
followed  by  a  steam  laundry. 

The  Peters'  firm  presents  one  of  the  best  examples 
of  that  excellent  institution,  the  workmen's  council 
(^Arbeiterausschuss  or  AeltestenratK).  Here  it  has 
gradually  developed  from  the  fund  ( Unterstiitzungs- 
kasse)  established  by  the  workmen  and  the  firm 
together  in  1861.  The  council  consists  of  a  partner 
of  the  firm,  who  presides  without  a  vote,  and  eight 
members  who  must  be  over  thirty  years  old  and  have 
seen  ten  years'  service  in  the  works :  half  of  these  are 
named  by  the  firm  and  half  are  chosen  by  the  general 
assembly  of  the  workmen.  The  council  provides  for 
the  employees  in  case  of  distress  or  misfortune  ;  over- 
sees the  moral  conduct  of  the  young,  and  incites  them 
to  self -education  in  their  leisure  hours ;  combats  rude- 
ness and  drunkenness ;  helps  in  the  faithful  obser- 
vance of  the  rules  and  regulations  of  the  factory,  and 
seeks  to  prevent  carelessness  and  waste.  It  takes 
counsel  with  the  firm  in  regard  to  changes  in  the 
rules  or  the  rates  of  wages,  the  hours  of  work,  pro- 
tection against  danger  in  the  mills,  and  improvement 
in  the  quality  and  increase  in  the  quantity  of  the 
product.  Herr  Peters  regards  the  work  of  his  council 
as  important  and  valuable,  and  the  institution  itself 
as  deserving  of  wide  imitation. 

The  firm  formerly  had  a  savings-bank  for  the  mills  ; 
saving  was  voluntary,  but  the  good- will  of  the  firm 
did  not  induce  as  many  workmen  to  save  as  could  be 
wished.  The  question  being  put  to  vote,  the  whole 
body  of  workmen  unanimously  decided  that  saving 
should  be  made  obligatory.     The  amount  was  fixed,  in 


WELFARE-INSTITUTIONS  IN  GERMANY      79 

1876,  at  5  per  cent,  of  wages  for  the  married,  and  10 
per  cent,  for  the  unmarried.  The  firm  adds  to  the 
prevailing  rate  of  interest  an  amount  half  as  large. 
In  1898  the  savings  fund  was  divided  into  two,  one 
compulsory  the  other  voluntary.  In  this  year  the 
joint  fund  held  about  900  m.  for  each  workman. 
A  small  "  help  fund,"  supported  by  the  employees 
since  1866,  receives  a  contribution  of  1,000  m.  a 
year  from  the  firm,  and  also  the  fines  paid  in  the 
factory  and  the  income  from  the  baths.  The  In- 
valid Fund,  providing  pensions,  has  been  maintained 
entirely  by  the  firm ;  at  the  close  of  1898  it  held 
107,605  m. ;  its  beneficent  work  is  supplemented  by  a 
Widows  and  Orphans'  Fund.  All  the  welfare-funds 
of  the  firm  now  amount  to  798,356  m.  The  institu- 
tions are  now  the  special  charge  of  a  Wohlfahrts- 
kasse,  with  a  capital  of  20,000  m.,  which  is  considered 
a  fellow-worker  with  the  firm,  the  general  assembly 
and  the  council. 

Herr  F.  Brandts,  in  his  weaving  establishment  at 
Munchen-Gladbach,  is  a  fine  example  of  the  Catholic 
patriarchal  employer  of  Germany  who  would  combat 
Social-Democracy  with  welfare-institutions.  Believing 
that  working-people  are  a  reasonable  body,  on  the 
whole,  he  thinks  them  likely  to  be  much  influenced 
by  an  employer  who  plainly  has  their  welfare  at  heart. 
"  We  will  not  sharply  draw  the  line  between  justice 
and  kindness :  the  farther  the  sphere  of  kindness 
extends,  the  greater  is  the  result."  Herr  Brandts 
excludes  from  his  factory  all  mature  women,  and 
children  under  fourteen  years  of  age.  Experience  has 
shown  that  women  seldom  take  work  elsewhere  in  con- 
sequence of  this  prohibition.     At  the  birth  of  a  child 


80  A  DIVIDEND  TO  LABOR 

a  small  present  is  made  to  the  parents  by  the  Unter- 
stiitzungskasse  (support  fund).  The  overseers  are 
required  to  set  a  good  example  of  moral  and  religious 
fidelity  to  the  workpeople,  and  to  maintain  a  moral 
spirit  in  the  factory :  improper  language,  unbecoming 
songs  and  the  like  are  strictly  forbidden.  Young 
people,  unmarried,  who  lodge  away  from  home,  with- 
out their  parents'  consent,  are  at  once  discharged : 
girls  especially  must  live  at  home.  The  behavior  of 
workpeople,  outside  of  work-hours,  is  an  object  of  con- 
sideration. Social  intercourse  of  the  sexes  is  forbid- 
den in  the  factory,  and  propriety  must  be  observed 
outside,  under  pain  of  dismissal.  Young  persons' 
wages  are  paid  to  their  parents.  When  a  woman 
worker  is  married,  Herr  Brandts  makes  her  a  present 
of  a  linen  outfit ;  widows  are  aided  in  the  care  and 
education  of  their  children. 

Premiums  are  given  for  punctuality  and  for  any 
excess  of  earnings  over  the  average,  as  figured  in  the 
rules  of  the  firm.  "  An  earnest  word  "  prefixed  to 
these  rules  reminded  the  employees  that  dram-drinking 
in  the  factory  had  greatly  increased,  and  that  it  fatally 
leads  the  young  into  temptation.  A  premium  of  one 
mark  a  month  was  offered  for  abstinence  from  spiritu- 
ous liquors :  and  this  is  paid  to  any  male  employee 
over  sixteen  who  deposits  a  slip  in  a  closed  box,  de- 
claring on  his  faith  and  honor  that  he  has  not  touched 
alcohol  in  any  form  during  the  past  month.  The 
confidence  thus  shown  by  the  firm  has  been  fuUy  jus- 
tified :  no  liquor  is  drunk  on  the  premises,  and  a  third 
of  the  employees,  on  the  average,  receive  the  pre- 
mium. 

Careful  and  paternal   arrangements  are  made  to 


WELFARE-INSTITUTIONS  IN  GERMANY      81 

encourage  savings,  which  receive  from  4^  to  6  per 
cent,  interest,  according  to  the  size  of  the  deposit. 
Workpeople  who  have  served  ten  years  in  the  factory 
have  a  savings-book  given  them  on  their  birthday 
with  fifty  marks  to  their  credit :  the  firm  undertakes 
the  care  of  these  savings  without  charge.^  A  Savings 
Union  (^Sparverein)  for  married  workmen,  although 
membership  is  entirely  voluntary,  counts  as  members 
all  who  are  qualified  under  the  rules.  A  mutual  aid 
society  for  men  and  women  makes  loans  without  in- 
terest, or  gifts  to  those  in  unusual  need,  even  before 
their  savings  are  exhausted  ;  the  firm  guarantees  five 
per  cent,  on  the  balances  of  the  society.  No  family 
belonging  to  the  Brandts  factory  is  ever  obliged  to  ask 
for  charity  from  the  town  authorities. 

Herr  Brandts  holds  a  special  half-hour  once  a  week 
at  the  disposal  of  his  employees  who  may  wish  to  see 
him  in  his  private  office.  "  It  goes  without  saying 
that  in  pressing  cases  every  workman  is  at  liberty  to 
come  to  me  at  any  time  of  the  day."  The  Work- 
men's Council  is  a  more  formal  means  of  commu- 
nication between  the  head  of  the  house  and  the 
employees.  It  consists  of  the  president  of  the  Sick 
Fund,  four  representatives  of  the  firm,  and  eight 
workpeople,  men  or  women.  It  can  call  to  its  aid 
special  representatives  of  different  departments  of 
the  factory  (  Vertrauensm'dnner).  This  Arbeitervor- 
stand,  formed  in  1873,  keeps  a  careful  oversight  of 
the  manners  and  morals  of  the  whole  force,  and  en- 
deavors to  settle  all  difficulties  before  they  become 
formidable.     It  advised  that  the  rule  be  made  about 

^  If  a  deposit  is  marked  "  Bent-money,"  it  can  be  \nthdravn  -with^ 
out  notice. 


^  A  DIVIDEND  TO  LABOR 

the  payment  of  young  people's  wages  to  their  parents : 
it  warns  or  dismisses  incompetent  or  imfaithful  or 
immoral  workers,  and,  in  general,  saves  much  friction  - 
which  might  otherwise  result,  and  accumulates  a  moral 
capital,  as  the  years  go  by,  which  is  of  great  value  to 
all  parties  concerned. 

The  firm  displays  its  interest  in  the  comfort  of  its 
people  in  numerous  minor  matters.  The  large  lunch- 
room has  rush-bottomed  chairs,  and  tables  for  small 
groups :  a  quarter  of  an  hour  for  coffee  breaks  the 
afternoon  work:  young  workers  have  half  an  hour 
intermission,  morning  and  afternoon  :  the  wash-rooms 
are  supplemented  by  clothes-rooms,  where  the  em- 
ployees can  change  their  ordinary  garments  for  work 
dress ;  baths  can  be  taken  at  any  time  of  the  day  in 
the  tubs  provided  by  the  firm  —  twenty-five  minutes 
are  allowed,  and  the  fee,  five  pfennige,  goes  to  the 
Arbeiterkasse. 

Children  of  workmen,  under  school  age  but  over 
three  years,  may  be  sent  to  a  kindergarten  kept  in  the 
St.  Joseph's  House,  a  fine  three-story  building  of 
brick  and  stone,  surrounded  by  gardens  and  a  park. 
The  latter  is  a  playground  for  the  children  of  the 
factory  in  their  free  hours,  and  is  provided  with  gym- 
nastic apparatus :  not  even  the  smallest  thefts  of  fruit 
have  been  committed  of  recent  years.  A  sewing- 
school,  at  which  attendance  once  a  week  is  compulsory 
for  young  women  under  eighteen,  is  kept  —  two  even- 
ings a  week  for  an  hour  and  a  quarter  before  the  close 
of  the  working-day  —  in  this  house,  which  is  a  general 
headquarters  for  the  musical  and  social  assemblages  of 
the  employees.  A  small  library,  dining-rooms  for  96 
persons,  a  kitchen  capable  of  cooking  for  180,  and  a 


WELFARE-INSTITUTIONS  IN  GERMANY      83 

cooking-school  for  girls  are  to  be  found  here.  The 
firm  supplies  the  instruments  of  the  Verein  for  vocal 
and  instrumental  music,  of  which  it  remains  the  owner. 

Herr  Max  Roesler  was  for  many  years  at  the  head 
of  the  earthenware  manufactory  in  Schlierbaoh,  near 
Wachtersbach  in  Cassel.  He  declared  in  his  parting 
address  to  the  employees  (over  400)  that  he  had  en- 
deavored to  transform  the  relation  between  workman 
and  employer,  from  one  of  mere  obedience  on  one 
side  and  a  mere  wages-connection  on  the  other,  into 
a  true  association  of  labor,  in  which  every  one,  from 
highest  to  lowest,  should  work  zealously  and  faithfully 
"  for  our  factory,  for  our  Prince,  for  our  community." 
In  this  honorable  effort  he  found  a  small  weekly  paper, 
which  he  established,  of  much  help.  The  "  Schlier- 
bacher  Fabrikbote"  (Factory  Messenger)  contained 
the  news  of  the  establishment,  announcements  of 
changes  in  the  regulations,  explanations  of  new  pro- 
cesses or  inventions,  personal  items  of  iuterest,  and 
communications  from  Herr  Roesler  concerning  the  life 
and  work  of  the  community. 

An  AeltestencoUegium  (council  of  senior  workmen) 
discharges  similar  functions  to  those  exercised  by  Herr 
Brandts'  Arbeitervorstand,  but  with  numerous  varia- 
tions in  its  constitution.  The  head  of  the  firm  must 
approve  the  decrees  of  the  collegium  :  he  can  modify 
them  and  refer  them  back  to  that  body.  There  is  a 
central  body,  and  sections  for  different  departments 
of  the  establishment.^  The  collegium,  in  connection 
with  the  other  authorities,  has  the  special  direction 
and  oversight  of  the  apprentices.     "  In  all  cases  it 

^  The  x>orcelain  painters  were  allowed  to  choose  their  own  snper- 
intendent. 


84  A  DIVIDEND  TO  LABOR 

has  worked  excellently  and  is  highly  respected  by  all 
the  workmen."  Herr  Roesler  divided  the  young 
unmarried  workmen  among  separate  houses,  each  of 
which  has  a  woman  of  mature  years  as  a  housekeeper. 
Houses  which  are  buUt  for  the  benefit  of  employees 
are  left  subject  to  minor  changes  within  or  without, 
according  to  the  pleasure  of  the  future  tenants. 
"  The  Aeltesten  have  decided  that  no  one  can  marry 
who  has  not  spoken  to  the  master."  If  any  work- 
man sets  up  a  household  before  the  council  of  his 
department  judges  him  capable  of  supporting  one,  he 
must  leave  the  community.  The  bride  receives,  in 
every  approved  case,  a  full  table  service  from  the 
firm. 

Herr  Roesler's  wife  in  the  "  Fabrikbote  "  gave  good 
counsel  to  the  women,  telling  them  how  to  keep  their 
husbands  from  frequenting  the  saloons  too  often,  by 
making  home  more  attractive  to  them ;  but  she 
advised  them  not  to  oppose  the  natural  desire  of  the 
workman  for  occasional  sociability  with  good  comrades 
at  the  tavern  :  "a  drink  at  the  right  time  is  not  al- 
ways the  '  care-bringer,'  it  may  be  a  '  care-breaker. '  " 
The  overseers  are  provided  with  books  of  the  factory 
savings-bank,  so  as  to  give  every  one  opportunity  to 
foUow  up  at  once  an  impulse  to  thrift :  on  account  of 
such  facilities  the  business  of  a  penny  savings-bank 
that  had  been  established  steadily  declined.  Men  on 
military  service  could  have  their  savings  sent  to 
them. 

A  musical  union  in  a  factory  was  rightly  considered 
by  Herr  Roesler  a  means  of  grace  ;  in  so  music-loving 
a  country  as  Germany,  his  exhortations  to  his  work- 
people  to  join  the  Verein  of  the  factory  were  not 


WELFARE-INSTITUTIONS  IN  GERMANY      85 

unheeded.  This  excellent  "  cement "  of  friendly- 
feelings  between  the  owner  of  the  works  and  the 
employees  is  conspicuous  at  Schlierbach,  vocal  and 
instrumental  music  being  equally  favored.  The 
various  holidays  and  the  birthday  of  the  head  of  the 
works  are  musically  celebrated.  The  chorus  is  also  a 
fire-guard.  Gymnastics  are  required  of  all  male 
members  of  the  factory  force:  they  join  the  Turn- 
verein,  and  thus  get  a  valuable  preparation  for  their 
army  service.  The  cultivation  of  fruit  and  flowers 
and  the  keeping  of  bees  are  successfully  encouraged  at 
Schlierbach. 

The  bleachery  and  dyeing  and  printing  works  of 
W.  Spindler  employ  some  2,100  workers  at  Spind- 
lersfeld,  Copenick,  near  Berlin.  The  industry  being 
in  good  condition  early  in  the  year  1872,  and  wages 
having  risen  considerably,  Herr  Spindler  instituted  a 
fund  for  compidsory  savings  (reserved  from  the  pay- 
ment of  wages)  :  until  March  31,  1886,  these  received 
8  per  cent,  interest,  and  since  that  time  6  per  cent. 
The  workman  can  draw  out  every  quarter  what  sum 
he  pleases,  leaving  but  a  definite  small  amount  as 
an  inalienable  balance,  which  can  be  drawn  only  in 
exceptional  circumstances.  In  1874  this  fund  was 
supplemented  with  another  for  the  superior  employees 
(Beamte),  who  receive  the  same  interest  on  their 
deposits.  Up  to  the  end  of  1898  there  had  been 
deposited  2,267,658  m. ;  the  interest  had  amounted  to 
237,693  m.,  making  a  total  of  2,505,351  m.  At  this 
time  there  was  on  deposit  the  sum  of  240,010  m.  Over 
fifty  of  the  depositors  had  had  accounts  from  the  begin- 
ning. Many  of  the  employees  regidarly  avail  them- 
selves of  the  privilege  of  the  quarterly  withdrawal, 


86  A  DIVIDEND  TO  LABOR 

leaving  only  the  required  balance  to  their  credit :  still 
about  half  the  men  and  one  quarter  of  the  women  are 
steady  depositors.  The  Beamtensparkasse  held  on 
deposit  at  the  same  date,  103,967  m.  The  capital  of 
the  Invalid  and  Pension  Fund  of  the  Spindler  estab- 
lishment amounted  to  798,687  m.,  on  the  first  of  Jan- 
uary, 1898  :  interest  for  that  year  was  39,934  m.,  the 
annual  contribution  of  the  firm,  31,072  m.,  and  ex- 
traordinary contributions  by  the  firm  were  51,370  m., 
making  a  total  of  921,063  m.  For  pensions  (amount- 
ing to  one  quarter  or  one  half  of  the  wages  last  paid) 
and  to  widows  and  orphans  there  was  paid  out  a  total 
of  27,064  m.  The  Accident  Fund  held  102,683  m. 
on  January  1, 1898  :  only  312  m.  needed  to  be  paid  out 
in  1898  on  account  of  accidents.  The  contribution 
formerly  made  by  the  firm  now  meets  the  legal  demand 
of  the  present  law  of  accident  insurance.  The  Sick 
Fund  had,  in  1894,  2,160  members :  its  receipts  were 
67,842  m.,  and  its  expenses  55,361  m.  Men  on  mil- 
itary service  receive  half-pay  from  the  firm.  Short 
vacations  of  a  week  or  less  are  granted  to  workers  in 
the  summer :  to  the  Beamte,  two  weeks  or  less.  In 
the  secondary  school  for  apprentices  fourteen  to  seven- 
teen years  old,  kept  in  the  evening,  there  were  three 
classes  and  sixty-six  pupils  :  as  the  apprentices  were 
at  work  from  6  A.  M.  to  6.30  p.  m.,  and  lost  their  even- 
ing recreation  because  of  compulsory  attendance,  it 
is  natural  that  they  always  rejoiced  over  the  ending 
of  the  required  terms.  Since  1894  the  apprentices 
attend  school  in  Copenick  at  the  expense  of  the  firm. 
The  library  is  a  comparatively  common  institution  in 
large  German  industrial  establishments ;  Herr  Spind- 
ler's  had  2,800  volumes  in  its  general  division  and 


WELFARE-INSTITUTIONS  IN  GERMANY      87 

900  in  its  technical  division  in  1896 :  the  tech- 
nical books  were  dra\vn  only  for  business  purposes, 
while  at  Spindlersfeld,  as  elsewhere,  the  usual  and 
natural  reading  of  these  workers  on  long  hours  is 
novels  and  illustrated  books.  Out  of  2,000  workers, 
775  used  the  library  and  8,727  books  were  taken  out. 
The  Spindler  works  have  an  elaborate  provision  of 
baths  for  the  force  employed.  A  bathing-house  for 
each  sex  is  built  over  the  Spree  for  summer  use : 
instruction  and  use  of  these  baths  are  free.  For  the 
warm  baths,  tub  or  shower,  Russian,  Roman,  sitz, 
etc.,  a  fee  is  charged.  The  dining-hall  (Speisehaus) 
contains  two  large  eating-rooms  for  the  1,200  employees 
who  live  too  far  away  to  go  home  at  noon  :  food  and 
drink  are  sold  at  low  prices  through  the  day.  The 
recreation  house  (Erholungshaus)  has  a  room  for 
the  kindergarten :  a  theatre  for  all  kinds  of  enter- 
tainment ;  a  reading-room  and  a  billiard-room :  a 
bowling  alley  and  a  boat-club  afford  other  opportuni- 
ties for  physical  exercises.  A  course  of  lectures  of 
a  popular  character  is  given  every  winter,  but  the 
attendance  is  small,  running  from  seventy  to  one 
himdred  persons :  probably  the  long  hours  of  work 
are  the  chief  reason. 

The  Augsburg  Carding  and  Spinning  Mills  pur- 
chased in  1873  for  operatives'  homes  a  tract  of  groimd 
near  the  mills  and  opposite  the  building  intended  to 
serve  as  headquarters  for  the  welfare-institutions. 
Eighteen  houses  accommodated  118  families  in  1893  : 
the  houses  are  surrounded  by  gardens  and  lawns 
with  trees  and  arbors.  As  at  Spindlersfeld,  there  is 
here  a  dining-hall  for  those  who  wish  to  buy  their 
dinner  or  to  warm  the  food  they  have  brought  from 


88  A  DIVIDEND  TO  LABOR 

home.  The  building  has  pleasant  surroundings  and 
can  accommodate  348  persons :  it  is  open  from  6.30 
A.  M.  to  6  p.  M.,  and  it  feeds  daily  some  300  persons : 
the  warming  ovens  are  used  somewhat  more  than  the 
cooking-ranges.  The  owners  have  taken  pains  that 
the  seats  at  the  dining-tables  shall  be  so  constructed 
as  to  allow  of  a  comfortable  after-dinner  nap ! 

A  long  one-story  building  contains  excellent  bathing 
arrangements.  These  are  open  free  of  cost  to  the 
force,  each  workman  being  allowed  thirty  minutes  :  in 
the  other  thirty  minutes  of  each  hour  the  bath-room  is 
cleaned  :  each  bather  receives  a  towel,  a  piece  of  soap 
(used  but  once)  and  a  comb  cleaned  expressly  for 
him.  With  1,000  persons  employed,  120  baths  on  an 
average  are  taken  each  day,  aU  but  a  few  availing 
themselves  of  the  privilege.  To  accommodate  the 
members  of  the  famihes  of  clerks  and  employees,  who 
do  not  themselves  work  in  the  mills,  with  similar  facili- 
ties for  bathing,  and  to  provide  laundry  conveniences 
for  families  living  near,  another  building  was  erected 
later.  The  laimdry  is  open  from  6  a.  m.  to  9  p.  M.  A 
separate  wash-room  is  provided  for  each  woman ;  no 
charge  is  made  for  the  use  of  it  or  of  the  drying-room. 
Mothers  using  this  public  laundry  who  have  small 
children  can  leave  them  in  the  waiting-room  in  care 
of  the  attendants  until  their  work  is  done.  In  1890 
the  186  families  in  the  Arbeiterkolonie  and  the  im- 
mediate neighborhood  (with  33  single  women)  did 
7,644  washings  and  took  2,396  baths,  children  not 
counted. 

In  a  roomy  workman's  dwelling  Herr  Mehl,  the 
head  of  the  works,  has  established  an  infant  school 
for  the  very  youngest  children,  under  the  care  of  the 


WELFARE-INSTITUTIONS  IN  GERMANY      89 

capable  widow  of  a  workman.  She  also  receives  a 
certain  number  of  young  girls  from  the  factory,  whom 
she  instructs  in  housekeeping,  and  especially  in  the 
care  of  infants  and  children.  A  girl  who  has  been 
employed  several  years  in  the  works  may  expect  to 
serve  her  turn  in  the  infant  school  as  a  reward  for 
good  conduct.  She  works  half  a  day  in  the  factory, 
morning  or  afternoon,  and  the  other  half  in  the  school, 
receiving  whole-day  wages  from  the  miU.  Nearly  all 
the  girls  thus  take  their  turn.  An  hour's  service  of 
worship  for  the  children  is  held  every  Sunday  morning, 
in  a  former  school-hall  in  the  weKare-institutions  build- 
ing :  from  forty  to  fifty  children  attend.  In  the  same 
room  is  a  small  library  of  books  for  young  children 
over  five  years  ;  the  room  is  open  from  two  o'clock  p.  m. 
to  four  on  Sundays  and  holidays :  the  attendance  varies 
greatly  according  to  the  season  and  the  weather.  The 
giving  out  of  apples,  from  the  trees  on  the  groimds, 
has  been  found  to  stimulate  regularity !  In  the  same 
building  is  the  hbrary  and  the  reading  and  writing 
room  for  older  persons :  the  smaller  use  of  these  advan- 
tages, as  compared  with  other  factories,  is  accounted 
for  by  the  fact  that  only  a  quarter  part  of  the  workers 
live  near  the  library. 

The  Prussian  Government  has  shown  an  interest  in 
the  housing  of  the  employees  in  its  State  mines,  foundries 
and  salt  works  since  the  time  of  Frederick  the  Great.  It 
has  promoted  the  settling  of  miners  and  salt-workers  by 
advances  and  premiums  on  building,  with  or  without  pro- 
vision of  a  site.  To  the  workman  in  the  Saarbruck  mines 
wishing  to  build,  for  instance,  the  Cabinet  allows  premiums 
running  from  250  to  300  thalers,  and  a  loan  without  interest 
of  500  thalers,  which  is  to  be  reduced  by  a  yearly  payment 


90  A  DIVIDEND  TO  LABOR 

of  10  per  cent.  In  these  coal  mines,  between  1842  and 
1891  inclusive,  5,264  miners  received  building  premiums 
amounting  to  3,787,950  m. ;  and  2,944  have  received  ad- 
vances without  interest,  amounting  to  4,117,050  m.  In  all 
Prussia,  between  1865  and  1891  premiums  of  3,471,815  m. 
and  loans  of  6,050,545  m.  were  paid  out.  At  Saarbruck 
42  per  cent,  of  the  workmen  own  the  houses  in  which  they 
live  :  in  the  Halle  mines  27  per  cent,  and  in  the  upper  Harz 
region  25  per  cent.  The  Lower-Rhenish-Westphalian  Min- 
ing District  is  the  largest  organization  of  mines  on  the 
Continent.  Its  authorities  supervise  nearly  180  coal  mines, 
with  a  yearly  output  of  more  than  50,000,000  tons  and  a 
working  force  of  more  than  200,000  men.  "  These  mines 
have  welfare-institutions  of  the  most  diverse  and  generous 
kinds,"  for  the  most  part  not  mentioned  in  Dr.  Post's  work.^ 

Villeroy  and  Boch,  who  own  large  earthenware  and 
mosaic  works  at  Mettlach,  have  elaborate  plans  for 
housing  their  employees.  Up  to  1895  they  had  built 
houses  for  152  families  at  a  cost,  including  ground,  of 
517,264  m. :  111,365  m.  had  been  repaid  in  install- 
ments by  January  1,  1898.  The  firm  gives  the  work- 
men a  choice  of  thirteen  different  styles,  thus  secur- 
ing desirable  variety :  the  firm  prefers,  itself,  double 
houses  with  one  family  in  each  part.  A  house  of  this 
kind,  one  and  a  half  stories  high,  has  a  lot  of  7,535 
square  feet,  of  which  6,313  feet  make  a  vegetable 
garden,  usually ;  23  feet  of  space  lie  between  the 
houses.  "The  streets  are  lighted  with  gas.  ...  A 
cooking-range  and  two  heating  stoves  are  placed  in 
each  dwelling :  "  each  tenement  has  four  rooms.  The 
ground  is  sold  at  actual  cost :  5  per  cent,  of  the  total 
cost  is  paid  annually — 3  per  cent,  being  interest  on 
capital,  and    2  per  cent,  payment  on  the  principal. 

1  Conininnication  from  the  chief  of  the  Oberbergamt  at  Dortmund. 


WELFARE-INSTITUTIONS  IN  GERMANY      91 

Similar  lodgings  in  the  vicinity  cost  as  much  again. 
For  the  first  ten  years  the  house  remains  the  property 
of  the  firm,  but  the  tenancy  must  continue  unless  the 
workman  quits  the  service  or  fails  to  pay  promptly. 
At  the  end  of  the  ten  years  the  tenant  can  return  the 
house  to  the  owners  and  the  money  which  he  has 
paid  on  the  principal  will  be  returned  to  him,  or  he 
can  become  himself  the  owner  by  continuing  his  pay- 
ments as  before.  "  This  will,  however,  be  the  mini- 
mum amount  that  can  be  paid  annually."  He  may 
liquidate  the  price  (the  original  cost)  at  any  time  in 
larger  amounts.  During  the  first  ten  years  the  firm 
pays  for  ordinary  repairs  and  insurance :  alterations 
and  additions  may  be  made,  and  the  expense  added  to 
the  purchase  price.  Rents  are  paid  monthly.  In 
case  the  tenant  leaves  the  employment  of  the  firm,  he 
may  be  srmimarily  ejected. 

Villeroy  and  Boch,  like  the  Krupp  firm,  contribute 
to  the  Pensionskasse  a  sum  equal  to  that  contributed 
by  the  workpeople.  Years  well  spent  in  military  ser- 
vice are  regarded  as  years  spent  in  the  factory,  if  a 
man  has  served  two  years  altogether  and  marries,  — 
and  the  firm  presents  him  an  outfit  of  household  goods 
from  the  factory.  The  wages  of  young  workers  must 
be  paid  by  them  to  their  parents,  by  agreement :  a 
committee  of  four  members  of  the  Brotherhood  of  St. 
Andrew  (the  association  corresponding  to  the  Aelte- 
stencollegium  in  other  factories)  has  the  oversight  of 
these  minors,  who  are  forbidden  to  visit  taverns,  to 
smoke,  or  to  carry  arms.  A  punishment  sometimes 
decreed  by  the  committee  is  that  the  offender  shall 
copy  a  chapter  of  the  "  Compass  for  Youthful  Work- 
men," which  is  in  the  hands  of  all,  so  as  to  impress  its 
contents  on  his  mind  I 


92  A  DIVIDEND  TO  LABOR 

A  boarding  and  lodging  house  for  young  women 
and  young  men,  whose  homes  are  at  a  distance,  is  a 
substantial  building,  superintended  by  the  Sisters  of 
St.  Borromeo,  who  give  instruction  in  the  elements  of 
the  housekeeping  art.  Sewing-machines  are  bought 
by  the  firm  for  women  who  wish  for  them  and  can  pay 
the  price  in  installments.  The  boarding  and  lodging 
house  sheltered  220  yoimg  women  in  1887-88,  and 
sold  60,232  portions  for  breakfast,  63,639  for  din- 
ner, and  51,447  for  supper.  A  hall  for  meetings  and 
for  social  purposes,  built  over  a  store  owned  by  the 
firm,  may  be  used  gratuitously  by  the  employees.  A 
Turnverein  and  a  musical  association,  usual  organiza- 
tions in  a  large  German  factory,  find  headquarters 
here.  The  firm  has  steadily  developed  its  institutions 
in  recent  years. 

Arlen  in  Baden,  half  way  between  Constance  and  Schaff- 
hausen,  is  a  place  created  by  the  spinning  and  weaving 
factories  established  in  1837  by  Herr  M.  H.  Ten  Brink ; 
the  firm  now  employs  1,200  persons.  Herr  Ten  Brink's 
son,  the  present  owner,  has  established  a  great  variety  of 
beneficent  institutions  for  his  workpeople,  in  addition  to 
the  obligatory  insurance  against  illness,  accidents  and  old 
age  prescribed  by  the  laws  of  the  empire.  These  institu- 
tions include  the  well-endowed  Heinrich  hospital  of  twenty 
beds  ;  free  consultation  with  the  firm's  doctor  ;  baths  ;  eco- 
nomical kitchens  for  providing  the  midday  meal  for  the 
workpeople ;  two  cooperative  companies  which  supply  gro- 
ceries, etc.,  at  the  lowest  prices  ;  two  libraries  of  800  vol- 
umes each ;  infant  schools  which  have  been  endowed  and 
made  over  to  the  commune ;  besides  a  home  boarding- 
school,  wherein  young  girls  —  those  already  employed  in 
the  factories  —  are  taught  all  the  branches  of  a  useful  educa- 
tion.    In  this  school  the  girls  pay  twelve  cents  per  day,  the 


WELFARE-INSTITUTIONS  IN  GERMANY      93 

remaining  expense  being  borne  by  the  firm ;  a  number  of 
the  girls  have  already  the  equivalent  of  several  hundred 
dollars  in  the  savings-bank. 

For  such  as  have  left  school,  recreation  halls  are  provided 
under  the  direction  of  competent  and  sympathetic  women. 
These  places,  to  which  the  young  girls  come  to  read,  sing, 
or  do  needlework,  are  a  great  resource  in  the  winter  even- 
ings and  on  Sunday.  Others  of  a  similar  kind  are  open 
to  young  men.  The  great  care  taken  of  the  young  girls, 
together  with  the  fact  that  those  who  misbehave  themselves 
are  immediately  excluded  from  the  workshops,  has  pro- 
duced the  happiest  results,  there  being  but  two  per  cent,  of 
illegitimate  births  (and  this  has  been  the  case  for  many 
years)  in  the  communes  which  surround  the  factories. 

In  the  interest  of  mothers  of  families  there  is  what  is 
called  a  "  housekeeping  sister,"  who  goes  from  one  home  to 
another,  giving  informal  lessons  in  cooking  and  domestic 
thrift  —  herself  providing  the  materials  for  many  of  those 
inexpensive  but  nourishing  dishes  which  are  to  be  seen  daily 
on  the  tables  of  well-to-do  people,  but  which  the  poor  are 
usually  the  last  to  adopt.  This  little  scheme,  only  recently 
introduced,  is  already  most  successful,  the  sister  bringing  an 
element  of  variety  as  well  as  of  distinct  assistance  into  the 
hard  lives  of  the  women. 

There  are  also  at  Arlen  two  savings-banks,  with  suflBcient 
capital  to  pay  five  per  cent,  interest  on  the  deposits  of  the 
active  workpeople,  while  pensioners  and  certain  classes  of 
employees  receive  four  per  cent.  The  yearly  deposits  aver- 
age $7,500.  Herr  Ten  Brink  has  built  a  great  number 
of  detached  houses  in  the  neighborhood  of  the  factories, 
the  larger  ones  containing  three  bedrooms  as  well  as  a 
kitchen  and  living-room.  Those  for  smaller  families  have 
two  bedrooms  only,  but  all  possess  a  wholesome  cellar,  an 
attic,  and  a  garden.  These  houses  are  sold  to  the  work- 
men at  cost,  and  on  such  easy  terms  ($50  down  and  the 
remainder  in  monthly  installments)  that  three  fourths  of 
them  are  sold  and  one  half  entirely  paid  for.     If  a  work- 


94  A  DIVIDEND  TO  LABOR 

man  has  saved  300  m.  towards  a  house,  Herr  Ten  Brink 
makes  him  a  gift  of  500  m.  "  Our  experience  is  that  tlie 
workman  who  owns  his  house  becomes  thereby  a  strong 
factor  in  the  cause  of  morality  and  order."  He  is  not  a 
believer  in  the  system  of  profit  sharing,  and  it  is  replaced 
in  his  establishment  by  "  gratifications,"  made  in  propor- 
tion to  the  length  of  time  (after  five  years)  which  each  man 
or  woman  has  been  in  his  employ,  and  credited  to  them  in 
one  of  the  savings-banks. 

Wages  are  paid  to  employees  just  as  long  as  they  are  able 
to  do  a  minimum  of  really  good  work,  while  the  pensions 
to  the  disabled  and  the  superannuated  are  on  a  higher  scale 
than  is  exacted  by  law.  At  the  present  time  twenty  pen- 
sioners receive  between  $50  and  $75  annually. 

The  results  of  the  social  organization  of  Arlen  may  be 
summed  up  as  follows  :  The  material  condition  of  the  work- 
people leaves  nothing  reasonable  to  be  desired.  From  the 
outset  they  are  beyond  the  reach  of  want  —  those  of  them 
at  least  who  take  advantage  of  these  provident  schemes  ; 
they  usually  become  owners  of  their  little  homes,  and  at 
sixty  years  of  age  may  possess  a  comfortable  capital,  quite 
independent  of  what  they  have  amassed  by  their  savings, 
and,  most  important  of  all,  they  regard  their  own  pro- 
sperity as  essentially  bound  up  with  the  prosperity  of  the 
factories  and  that  of  the  Ten  Brink  family.  Their  interest 
is  therefore  to  produce  the  best  work  with  the  least  possible 
waste  of  time  and  material.  Moreover,  the  industrial 
peace  of  Arlen  is  absolutely  undisturbed.^ 

The  North  German  Jute  Spinning  and  "Weaving 
Factory  at  Schiffbeck,  near  Hamburg,  is  honorably 
distinguished  for  the  fine  schools  which  it  maintains, 
—  costing  some  50,000  m.  to  build,  and  5,000  m.  a 
year  to  support.     The  edifice  has  gardens  in  the  rear, 

^  The  above  account  is  taken  witli  slight  abridgment  from  a  letter 
in  the  Evening  Post  of  New  York,  dated  at  Arlen,  November  17, 1898. 


WELFARE-INSTITUTIONS  IN  GERMANY      95 

provided  with  gymnastic  apparatus.  The  boys  between 
twelve  and  fourteen  years  of  age  employed  in  the  factory 
receive  instruction  in  the  forenoon  from  eight  o'clock 
to  eleven  o'clock,  and  work  in  the  afternoon ;  the 
girls  of  the  same  age  work  in  the  morning  and  attend 
school  in  the  afternoon.  The  pupils  have  lessons, 
from  a  capable  student  in  a  training  coUege  (Semi- 
narist), in  reading,  writing,  arithmetic,  the  German 
language  and  history,  and  religion.  In  1888  there 
were  fifty  boys  and  fifty-four  girls  in  attendance. 
"  The  children  instructed  in  the  factory  school  have 
become  the  most  modest,  well-behaved  and  diligent 
workers."  A  secondary  school  for  older  scholars  who 
wish  to  go  farther  in  the  pursuit  of  knowledge  was 
established  in  1885,  with  twenty-five  pupils  :  in  1888 
there  were  thirty-five.  Attendance  is  compulsory, 
but  does  not  need  to  be  such  for  the  boys  who  have 
attended  the  lower  school :  new-comers,  on  the  other 
hand,  would  not  attend  of  their  own  accord,  but  they 
are  soon  brought  up  to  the  same  level  of  willingness  to 
learn.  Music  and  drawing  are  added  to  the  earlier 
studies.  This  school  is  necessarily  held  in  the  even- 
ing, after  the  day's  work  is  over,  for  an  hour,  or  an 
hour  and  a  half.  Fines  for  non-attendance  go  to 
make  up  prizes  for  especially  diligent  scholars.  Three 
savings-books  prizes  are  given  to  the  three  who  excel 
all  others.  The  scholars  form  a  Turnverein,  exercising 
twice  a  week;  this  feature  naturally  increases  the 
interest  in  the  regular  school  lessons.  The  girls  in 
the  factory  school  are  instructed  for  two  hours  on 
Saturday  afternoon  in  sewing,  darning,  knitting,  and 
mending.  All  these  schools  are  at  the  expense  of  the 
firm.     The  teachers  help  greatly  in  preserving  plea- 


96  A  DIVIDEND  TO  LABOR 

sant  relations  between  the  workpeople   and  the  em- 
ployers. 

This  firm  has  spent  400,000  m.  in  the  erection 
of  166  dwellings  for  its  force.  The  rents  vary  from 
2  to  3 1  m.  a  week:  houses  are  sold  for  an  annual 
payment  of  4  per  cent,  for  rent,  2  per  cent,  as  pay- 
ment on  the  principal,  and  three  fourths  of  1  per 
cent,  for  expenses.  The  firm  insures  the  household 
goods  of  the  tenants  against  fire.  Herr  Meyer,  the 
director  of  the  works,  learned  from  experience  that 
the  factory  savings-bank  would  have  no  success  un- 
less savings  were  made  compulsory.  He  instituted 
a  new  compulsory  arrangement  at  a  time  when  a  rise 
in  wages  was  granted,  and  retained  a  sum  about  the 
size  of  this  increase :  aU  has  gone  well  since.  The 
Workingmen's  Council  called  the  attention  of  the 
firm  to  the  fact  that  the  retail  dealers  in  Schiffbeck 
gave  long  credit  to  the  men,  and  reimbursed  themselves 
by  charging  from  10  to  25  per  cent,  above  the  prices 
in  Hamburg.  The  council  proposed  the  establish- 
ment of  a  cooperative  store  for  the  works.  The  pro- 
posal was  approved  and  the  store,  established  with 
10,000  m.  capital,  has  paid  a  6  per  cent,  dividend 
since :  it  has  750  members  and  does  a  business  of 
120,000  m.  yearly.  Prices  in  Schiffbeck  were  lowered 
some  15  per  cent.  The  firm  gives  substantial  aid  to 
the  store.  In  connection  with  the  sick  fund  it  en- 
gages two  physicians,  who  may  be  consulted  twice  a 
week  in  a  room  set  apart  for  them :  a  sick-room  with 
a  medicine  shelf  affords  other  relief.  A  creche ;  a 
large  club-room  with  a  system  of  low-priced  lunches, 
and  rooms  for  reading  and  billiards ;  a  library,  an  aid 
fund,  a  summer-house  system,  instruction  for  young 


WELFARE-INSTITUTIONS  IN  GERMANY      97 

women  in  cooking-  and  housekeeping,  and  a  band  and 
fire-guard  are  other  institutions  at  Schiffbeek,  where 
there  are  now  1,500  employees.  At  Ostritz,  Oskar- 
strbm  and  Bischweiler  the  company  has  some  2,900 
operatives  for  whom  it  makes  similar  arrangements. 

Among  the  most  attractive  houses  erected  by  Ger- 
man employers  for  workpeople  are  those  at  Dornbirn, 
eight  miles  south  of  Lake  Constance,  in  the  Tyrol. 
Here  Herr  F.  M.  Hammerle  has  a  large  cotton-mill. 
The  dwellings  (one  story  or  two  stories)  are  rented  or 
can  be  acquired  by  monthly  payments.  Some  have 
room  in  the  outbuilding  for  the  family  cow,  while  the 
houses  are  solidly  and  very  tastefully  built,  in  a  home- 
like style.  Artistically  grouped,  they  stand  apart  in 
garden  groimds,  mostly  shaded  by  fruit-trees,  and  look- 
ing upon  beautifid.  mountain  scenery.  The  two-story 
houses,  for  rent  to  two  families,  have  verandas  on  the 
gable-end,  round  the  pillars  of  which  climbing  plants 
coil.  These  verandas  render  possible  a  great  deal  of 
life  in  the  open  air  at  meal-time  in  pleasant  weather, 
and  on  Sundays.  In  winter  the  large  kitchen  serves 
well  as  an  eating-room.  A  tenement  of  this  kind, 
with  a  garden  and  pasturage, brings  80  florins  a  year: 
without,  60  fl.  The  houses  for  sale  range  in  price 
from  2,600  to  3,600  fl. :  the  monthly  payments  vary 
from  20  to  35  fl. :  great  accommodation  is  given  to  the 
would-be  home-owners. 

The  Bochum  (five  miles  from  Essen)  Company  for 
Mining  and  Cast-Steel  Manufacture  has  built  up  "  col- 
onies "  after  the  same  style  as  those  of  the  Krupp  establish- 
ment :  a  dozen  of  these  colonies  contain,  altogether,  1,450 
tenements  for  the  married  workmen ;  a  considerable  num- 
ber of  families  occupy  one  house.     A  very  large  four-story 


98  A  DIVIDEND   TO  LABOR 

lodging-house  has  150  rooms,  in  each  of  which  from  four  to 
twelve  single  men  sleep.  A  great  dining-hall  in  the  rear 
will  accommodate  1,000  men  with  dinner  and  supper  at 
moderate  prices :  an  orchestrion  plays  during  the  noon 
hour :  a  slaughter-house  supplies  the  meats  used.  The 
expense  of  the  double  building  was,  in  1891-92,  36,000  m. 
Besides  the  baths  in  the  lodging-house,  the  company  main- 
tains a  large  steam-heated  wash-building  (Waschkasse)  with 
800  lockers  and  four  bathing-houses  connected  with  it.  On 
the  company's  farm  are  kept  120  cows,  whose  milk  and 
butter  are  sold  to  workpeople  at  low  prices.  The  company 
supports  a  kindergarten  for  300  children,  and  a  housekeep- 
ing school  for  50  girls.  A  shop  where  convalescents  and 
others  incapable  of  full  work  make  brushes,  for  some  two 
marks  a  day,  is  self-supporting. 

Dr.  H.  Traun  is  now  the  sole  director  of  the  Har- 
burg  Rubber  Comb  Company,  which  employs  over 
1,200  persons  at  Wandsbeck,  three  miles  from  Ham- 
burg, and  in  its  other  works.  He  has  erected  for 
them  a  number  of  houses  in  a  pleasing  variety  of 
architecture.  Nine  one  and  a  half  story  dwellings  are 
usually  built  in  a  connected  row,  and  surrounded  by  a 
garden  ;  the  middle  dwelling  has  two  free  tenements 
for  invalids.  Eents  are  so  adjusted  that  the  company 
receives  about  2|  per  cent,  on  its  investment.  It 
keeps  up  a  collective  fire-insurance  policy  on  the  ten- 
ants' furniture.  In  1898,  538  workmen  were  thus 
insured  for  1,150,250  m.  Dr.  Traun  gave  up  this 
building  system  for  several  reasons  and  started  a 
building  society,  which  is  now  very  flourishing,  with 
1,264  members.  A  rent -savings  fund  has  largely 
done  away  with  the  advances  from  other  funds  once 
quite  regularly  made.  A  privatunterstiitzungskasse 
supplements  the  usual  krankenkasse,  with  its  compul- 


WELFARE-INSTITUTIONS  IN  GERMANY      99 

sory  and  voluntary  contributions ;  it  provides  fairly 
well  for  the  sick,  for  burial  expenses,  for  widows  and 
orphans,  and  for  pensions ;  the  company  contributes 
the  same  sum  as  the  employees.  In  1898  the  ex- 
penses were  15,578  m.  and  the  capital  188,139  m. 
The  Friedrich  Traun  Foundation,  established  by  his 
three  sons  as  a  memorial  in  1881,  further  supplements 
the  work  of  the  fund  just  named,  and  expends  modest 
sums  far  purposes  of  culture  and  amusement.  The 
capital  was  10,000  m.  at  first,  to  which  Dr.  H.  Traun 
has  added  over  6,000  m.  since.  In  1891  the  com- 
pany expended  under  this  account  6,570  m.  (to  the 
interest  on  the  foundation  it  had  added  over  5,000  m.). 
This  amount  went  for  these  several  purposes :  a  Christ- 
mas gift  of  100  m.  to  a  workman  who  had  served 
fifty  years ;  Christmas  presents  of  money  and  pro- 
visions to  widows,  orphans  and  others  in  need ;  for 
wedding  and  christening  presents  (twenty  marks  and 
ten  marks  each)  ;  school  fees  in  the  Hamburg  Trade 
School  and  the  Continuation  Course  of  the  Arbei- 
terbildimgsverein ;  ^  musical  instruction  and  instru- 
ments (2,315  m.)  ;  ^  sickness  and  special  need,  includ- 
ing widows  and  pensioners  not  sufficiently  provided 
for  otherwise ;  sending  children  into  the  country  in 
summer  (Ferienkolonien),  and  the  services  of  a  dea- 
coness in  the  homes  of  the  sick  or  destitute. 

A  minor  feature  of  special  interest  in  this  Rubber 
Comb  Company's  relations  with  its  employees  is  its 

^  The  firm  laments  the  small  number  of  those  anxious  to  attend  the 
trade  school  (16  in  1891)  or  the  continuation  course  (5).  It  pays 
other  school  fees  in  cases  of  need. 

^  A  Gesangverein,  "  Freundschaft,"  counts  twenty-eight  members^ 
and  a  Horn  Chorus  thirteen ;  the  Gesangverein  "  Leopoldus  "  contrib- 
utes to  the  musical  expenses. 


100  A  DIVIDEND  TO  LABOR 

Coffee-Kitchen.  Its  primary  object  was  to  give  the 
workpeople  a  substitute  for  the  quite  unusable  Ham- 
burg water  supply.  It  was  planned  on  the  model  of 
the  Hamburg  Coffee-Houses,  and  was  controlled  by 
the  workmen.  The  six  workmen  on  the  committee  of 
the  Privatunterstiitzimgskasse  attend  to  the  buying, 
the  preparation  and  the  selling  of  the  coffee,  making 
a  monthly  report  to  the  firm.  The  drink  is  given  out 
on  checks.  The  price  has  been  reduced  two  or  three 
times :  at  first  4  pfennige  for  a  cup  containing  four 
tenths  of  a  litre,  it  is  now  2  J  pf .  The  demand  was  at 
first  200  litres  a  week,  and  had  risen  to  2,400  litres  in 
1895.  The  company  bears  the  expense  of  the  kitchen, 
the  service  and  the  heating.  The  experience  of  the 
kitchen  during  the  cholera  epidemic  of  1892  deserves 
mention.  Dr.  Traun  wrote  on  the  12th  of  Septem- 
ber :  "  Immediately  after  the  outbreak  of  the  epi- 
demic, on  August  16,  aU  the  Elbe  water  in  the  Ham- 
burg factory  was  shut  off.  The  coffee  was  reduced 
to  2  pf.,  and  water  boiled  and  then  cooled  was  fur- 
nished free.  The  use  of  coffee  rose  to  1,648  litres  a 
week,  although  the  number  of  persons  employed  had 
fallen  to  some  600.  Of  the  nearly  100  workmen 
living  in  Harburg,  who  work  in  Hamburg,  and  take 
breakfast,  dinner  and  supper  in  the  Hamburg  factory 
in  the  coffee  -  kitchen,  not  one  has  yet  fallen  sick, 
while  numerous  workmen  taking  their  meals  in  their 
homes  in  Hamburg  were  attacked  by  the  plague. 
Such  a  blessed  result  of  the  coffee-kitchen  no  one  had 
hoped  or  expected." 

The  firm  supports  a  library  of  1,000  volumes  and 
distributes  free  100  copies  of  the  weekly  paper,  "  Der 
Arbeiterfreund."     In  1895  it  purchased  100  sewing- 


WELFARE-INSTITUTIONS  IN  GERMANY      101 

machines  for  the  workmen's  wives,  to  be  paid  for  in 
weekly  instaUments  of  1.50  m.,  and  200  bicycles  for 
the  men  at  the  same  rate :  an  old  employee  cares  for 
these  wheels  in  a  building  erected  for  them,  in  return 
for  his  rent. 

The  Lead  and  Silver  Works  at  Ems,  with  1,400 
employees,  has,  for  their  use,  three  well-equipped  institu- 
tions. The  lodging  and  boarding  house  for  men  is  a  large 
building  costing  90,000  m.,  two  stories  high  ,in  the  middle 
and  three  stories  in  the  wings.  It  is  surrounded  by  gar- 
dens and  fields  and  can  accommodate  300  men  in  its  40 
sleeping-rooms,  in  each  of  which  are  three  to  seven  beds : 
the  building  is  heated  by  a  warm-water  apparatus,  and  has 
a  number  of  warm  baths.  The  dining-hall  will  seat  300 
persons,  and  there  is  a  workmen's  library  adjoining.  In 
the  morning  and  afternoon  coffee  can  be  obtained  by  any 
one,  and  meals  are  furnished  at  noon  and  night.  A  second 
house  of  the  same  kind  is  to  be  found  at  the  mine  in  Ems- 
bachthal.  In  1891  both  houses  received  10,292  m.  for  lodg- 
ing (Schlafgeld)  and  23,363  m.  for  food.  Of  coffee,  155,744 
morning  portions  were  sold,  and  149,644  afternoon  por- 
tions :  53,658  dinners  and  36,601  suppers  were  provided. 

The  cooperative  store  established  in  1875  sells  goods  at 
such  reduced  prices  as  to  leave  a  small  surplus  at  the  end 
of  the  year,  a  part  of  which  goes  to  the  reserve  fund  and 
the  remainder  to  the  members  in  the  form  of  a  dividend. 
The  bakery  attached  caused  a  notable  reduction  in  the 
price  of  bread,  especially  as  the  store  sells  to  all  applicants, 
whether  members  or  not.  A  shoe-shop  is  another  feature. 
In  1891-92  the  store  did  a  business  of  475,448  m.,  of  which 
30,893  m.  were  profit ;  the  dividend  was  8^  per  cent.  The 
number  of  members,  very  small  at  first  because  of  the  sus- 
picions of  the  employees,  had  increased  to  633  in  1892, 
partly  because  the  company  in  1876  decided  to  rent  houses 
and  make  advances  only  to  workmen  who  were  members, 
but  mainly  because  of  the  effect  of  the  earlier  dividends  and 


102  A   DIVIDEND  TO  LABOR 

the  fall  in  the  price  of  bread  due  to  the  bakery.  The 
admirable  school-building  of  the  works  accommodates  165 
children  in  its  four  rooms ;  each  child  costs  the  firm  for  its 
education  thirty-one  marks  a  year. 

Herr  Heinrich  Freese,  the  head  of  the  Hamburg- 
Berlin  Venetian-Blind  Factory  (the  main  house  is 
in  Berlin,  with  three  branches  elsewhere),  is  a  pro- 
found believer,  on  the  basis  of  his  own  experience,  in 
the  Workman's  Council.  In  his  establishment  such 
a  coimcil  (Arbeitervertretmig)  was  set  up  in  1884. 
It  consists  of  four  persons  named  by  the  firm  and 
eleven  by  the  workmen  (100-120)  annually.  Work- 
people who  wish  to  attend  the  meetings  of  the  council 
as  spectators  are  allowed  to  do  so.  The  last  matter 
in  the  order  of  the  day  for  each  meeting  is  "  wishes 
and  grievances  of  workers "  (Wunsche  und  Besch- 
werden)  ;  under  this  head  any  employee  has  full  op- 
portunity to  make  known  any  desire  or  complaint  he 
cherishes.  The  activity  of  the  council  may  be  seen 
in  these  instances.  In  1884  it  regulated  the  sale  of 
beer  in  the  factory.  (Good  beer  is  bought  at  whole- 
sale rates  and  supplied  to  the  employees  at  a  moderate 
price,  and  a  yearly  profit  is  made  (7,443  m.  at  the  end 
of  1898),  which  goes,  one  half  to  the  buyers  of  beer 
and  one  half  to  a  savings  fund).  In  1887  the  council 
introduced  a  system  of  modest  compulsory  savings 
from  the  weekly  wages.  These  receive  six  per  cent, 
interest,  and  are  repaid  to  the  depositors  at  Christmas- 
time: in  1898  they  amounted  to  4,889  m.  In  1895 
the  Support  Fund,  a  supplement  to  the  Provident 
Fund,  was  created :  it  had  paid  out,  to  the  end  of 
1898,  6,511  m.,  and  owned,  at  the  end  of  the  year 
1897,  5,042  m. 


WELFARE-INSTITUTIONS  IN  GERMANY      103 

All  changes  in  the  rules  of  the  factory  and  the 
business  are  to  be  approved  by  the  body  of  workers : 
a  one-sided  alteration  of  the  labor  contract  is  not  per- 
missible. A  general  assembly  of  tliis  kind  in  1890 
discussed  the  project  of  shortening  the  labor-day. 
According  to  its  decision,  the  council  voted,  April 
28,  that  the  eight-hour  day  must  be  rejected  as  im- 
practicable, and  that  the  proposal  of  the  firm  to 
introduce  a  nine-hour  day  without  reduction  of  wages 
be  accepted.  On  the  31st  of  December,  1891,  the 
firm  made  a  scale  of  wages  (Akkordtarife)  for  two 
years  to  come ;  a  trial  of  an  eight-hour  day  was  made 
in  January  and  February,  and  the  workmen  agreed  to 
accept  this  scale  for  the  shorter  day,  for  it  had  become 
plain  that  in  eight  hours  they  did  as  much  as  before 
and  saved  the  firm  some  waste.  The  men  on  day- 
wages,  it  was  agreed,  should  receive  the  same  wages 
as  previously.  In  summer  and  winter  alike,  the  men 
stop  work  at  five  o'clock  in  the  afternoon.  In  1891 
the  council  established  a  factory  library,  under  the 
direction  of  a  committee :  the  choice  of  books  is  prac- 
tically in  the  hands  of  the  workpeople.  Profit-sharing 
has  been  in  effect  since  1890.  Says  Herr  Freese : 
"  The  novelty  of  the  institution  [the  council]  will 
doubtless  offer  some  difficulties  at  first,  but  these  are 
not  to  be  compared  with  the  advantages :  from  my 
own  experience  I  can  emphatically  advocate  the  legal 
introduction  of  Workmen's  Councils." 

An  example  of  the  effectiveness  of  a  support  fund  (Unter- 
stUtzungskasse)  on  a  small  scale  is  afforded  by  the  printing- 
house  of  B.  G.  Teubner  in  Leipzig.  It  was  established 
in  1869  for  employees  of  four  years'  standing.  For  every 
employee  in  the  house  (with  the  exception  of  apprentices  and 


104  A  DIVIDEND   TO  LABOR 

school  children  employed)  the  firm  pays  10  pfennige  a  week 
into  the  fund  :  10  per  cent,  of  this  must  go  to  the  reserve  :  the 
employees  make  no  contribution.  A  council  chosen  partly 
by  them  distributes  the  aid  given  out.  In  1897-98  the  sum 
given  by  the  firm  was  1,761  m. :  1,300  m.  were  allotted ; 
the  reserve  fund  had  increased  to  46,515  m.  In  1891  a  spe- 
cial vacation  fund  was  established  from  the  reserve.  For 
an  eight-day  outing  a  workman  might  receive  30  m. :  an 
assistant  or  a  woman,  20  m. :  in  1897-98,  560  m.  paid  for 
the  vacations  of  22  workmen. 

From  the  "  Personal  Recollections  "  of  the  distinguished 
electrician,  Werner  von  Siemens,  written  in  1892,  I  take 
the  following  account  of  the  provision  for  their  employees 
made  by  the  great  Siemens  establishments  in  Berlin 
(Siemens  und  Halske)  and  London :  — 

"  It  had  very  early  become  clear  to  me  that  a  satisfactory 
development  of  the  continually  growing  firm  must  depend 
on  securing  the  hearty,  spontaneous  cooperation  of  all  the 
workers  for  the  furtherance  of  its  interests.  To  attain  this, 
it  seemed  to  me  essential  that  all  who  belonged  to  the  firm 
should  share  in  the  profits  according  to  their  performances. 
As  my  brothers  acceded  to  my  view,  this  principle  came 
to  be  adopted  in  all  our  establishments.  Arrangements  to 
that  end  were  settled  at  the  celebration  of  the  twenty-fifth 
anniversary  of  the  original  Berlin  firm  in  the  autumn  of 
1872.  We  then  determined  that  a  considerable  portion  of 
the  yearly  profits  should  regularly  be  set  aside  for  allowing 
a  percentage  to  officials  proportionate  to  their  salaries  and 
bonuses  to  workmen,  and  as  a  reserve  fund  for  necessitous 
cases.  Moreover,  we  presented  the  collective  body  of  work- 
ers with  a  capital  stock  of  £9,000  for  an  old  age  and  invalid 
fund,  the  firm  agreeing  to  pay  every  year  to  the  account  of 
the  managers  of  the  fund,  chosen  directly  by  those  inter- 
ested, fifteen  shillings  for  each  workman  and  thirty  shillings 
for  each  official  who  had  served  in  the  business  uninterrupt- 
edly for  a  twelvemonth.^ 

*  Since  1896-97  this  contribution  has  been  doubled  for  the  7,218 


WELFARE-INSTITUTIONS  IN  GERMANY      105 

"  These  arrangements  have  worked  remarkably  well  dur- 
ing the  nearly  twenty  years  of  their  existence.  Officials  and 
workmen  regard  themselves  as  a  permanent  part  of  the  firm, 
and  identify  its  interests  with  their  own.  It  is  seldom  that 
officials  give  up  their  position,  since  they  see  their  future 
assured  in  the  service  of  the  firm.  The  workmen  also  re- 
main permanently  attached  to  the  firm,  as  the  amount  of 
the  pension  rises  with  the  uninterrupted  period  of  service. 
After  thirty  years'  continuous  service  the  full  old-age  pen- 
sion commences  with  two  thirds  of  the  wages,  and  that  this 
is  of  practical  importance  is  proved  by  the  respectable  num- 
ber of  old-age  pensioners  who  are  still  strong  and  hearty, 
and  besides  their  pension  continue  to  receive  their  full 
wages.  But,  almost  more  than  the  prospect  of  a  pension, 
the  endowment  fund  for  widows  and  orphans  connected  with 
the  pension  fund  binds  the  workmen  to  the  firm.  It  has 
been  proved  to  be  the  case  that  this  endowment  is  still  more 
urgent  than  the  invalid  pension,  as  the  uncertainty  of  the 
future  of  those  dependent  on  him  commonly  weighs  more 
heavily  on  the  workman  than  his  own.  The  aging  work- 
man nearly  always  loves  his  work,  and  does  not  willingly  lay 
it  down  without  actual  and  serious  need  of  rest.  Accord- 
ingly, the  superannuation  fund  of  the  firm,  in  spite  of  a 
liberal  use  of  the  pensions  by  the  workmen  themselves,  has 
only  consumed  the  smaller  part  of  the  incomings  from  the 
interest  of  the  funded  capital  and  the  contributions  of  the 
firm  towards  pensions.  The  larger  part  could  be  applied 
for  the  support  of  widows  and  orphans  as  well  as  for  in- 
creasing the  capital  stock  of  the  fund,  which  is  destined  to 
secure  the  workman's  claim  for  pensions  in  the  event  of  the 
possible  liquidation  of  the  business." 

employees  (1898).  The  firm  having  completed  fifty  years  of  exist- 
ence in  1897,  the  partners  presented  one  million  marks  to  the  em- 
ployees, which  was  applied  to  the  pension  fund ;  in  1898  a  further 
gift  of  150,000  m.  was  made.  Handsome  sums  are  given  to  employees 
completing  2.5  years'  service.  A  special  benevolent  fund,  restaurants 
and  stores  are  other  institutions  of  the  company. 


106  A  DIVIDEND  TO  LABOR 

The  Arbeiterausscliuss  in  the  machine  and  wagon 
works  of  F.  Ringhoflfer  at  Smichow  near  Prague 
(900  employees)  is  obliged  to  keep  the  whole  body  of 
workmen  informed  of  its  doings  by  making  two  re- 
ports at  least  in  the  year,  which  are  distributed  at  the 
expense  of  the  firm.  These  reports  cover  the  various 
welfare-institutions  of  the  establishment,  the  operation 
and  condition  of  which  are  fully  described :  they  in- 
clude dwelhng-houses,  a  pension  fund,  and  funds  for 
making  loans  and  giving  help  in  time  of  special  need. 
The  council  is  composed  of  the  six  directors  of  the 
sick  fund,  chosen  by  the  general  assembly  of  the  mem- 
bers of  that  fund,  for  three  years.  The  council  decides 
upon  the  workmen  to  be  laid  off  when  work  is  slack ; 
looks  after  the  beer  supply ;  has  a  superintendence  of 
the  houses  occupied  by  the  workpeople ;  and,  in  gen- 
eral, has  numerous  other  activities,  specified  in  the 
detailed  "  Instruktion  "  drawn  up  for  it  by  Herr  Ring- 
hofPer.  The  president  of  the  council  is  the  head  of 
the  firm  or  his  representative,  whose  approval  is  neces- 
sary for  any  action  to  take  effect.  The  oversight  of 
the  apprentices  is  an  important  part  of  the  functions 
of  the  council. 

A  small  fund  of  10,000  florins  makes  short  loans, 
not  above  15  fl.  in  amount,  at  a  moderate  interest, 
which  are  repaid  in  ten  weekly  installments  retained 
from  wages.  More  important  needs  are  relieved  from 
the  Help  Fund,  which  assists  men  out  of  work  and 
special  cases  of  distress  by  loans  without  interest :  the 
original  foundation  of  this  fund  was  10,000  fl.  A 
fund  for  pensions  and  for  widows  and  orphans  was 
begun  with  a  gift  of  2,000  fl.  in  1870,  and  further 
supported  by  an  annual  contribution  from  the  firm  of 


WELFARE-INSTITUTIONS  IN  GERMANY      107 

10  fl.  for  each  skilled  artisan  and  5  fl.  for  each  day- 
worker  who  has  been  employed  for  ten  years :  it  now 
amounts  to  more  than  40,000  fl. :  it  receives  the 
income  of  a  Provident  Fund  now  amounting  to  more 
than  100,000  fl.  An  employee  leaving  the  establish- 
ment simply  because  of  lack  of  work  does  not  lose  his 
claim  upon  the  fund.  A  Safety  Corps  for  the  works 
takes  care  of  men  who  have  been  injured  or  have 
fallen  sick  suddenly,  until  the  doctor  comes.  A  relief 
chest,  painted  green  and  marked  with  a  red  cross  on 
a  white  ground,  is  provided  for  each  workshop,  and  a 
stretcher  for  the  factory.  The  firm  has  extended  its 
institutions  of  recent  years  by  adding  an  accident- 
insurance  fund,  a  building  scheme,  a  library  and  other 
helps.  Its  interesting  reports  are  printed  back  to  back 
in  duplicate  —  in  German  and  in  Hungarian. 

Herr  Roesicke,  director  of  the  brewery  at  Wald- 
schlosschen  in  Dessau,  provides  for  the  sick  the  at- 
tendance of  a  physician,  for  a  slight  fee  (intended  only 
to  prevent  needless  calls),  and  aid  may  be  given  for 
twenty-six  weeks  —  in  extreme  cases  for  a  year :  the 
woman  in  childbed  has  a  four  weeks'  allowance.  For 
convalescents  in  summer  a  four  weeks'  rest  is  granted 
in  a  home  in  the  Harz  Mountains.  A  managing 
committee  of  workmen  keeps  the  relief  of  sickness  and 
distress  at  its  proper  level.  The  council  has  also 
supervision  of  the  Kantine,  or  restaurant,  which  sup- 
pHes  coffee  mornings  and  afternoons,  and  a  meal  at 
noon  for  40  or  20  pf.  The  brewery  will  give  a  fair 
supply  of  beer  to  each  household  :  beer-checks  can  be 
exchanged  for  coffee-checks.  Milk  is  sold  at  a  low 
price  from  the  brewery  farm,  the  preference  being 
given  to  families  with  children  ;  a  cup  of  milk  is  given 
to  each  factory  child  in  the  afternoon. 


108  A  DIVIDEND   TO  LABOR 

Boys  over  six  years  of  age  receive  instruction  in 
gymnastics  on  Wednesday  and  Saturday  afternoons, 
from  five  o'clock  to  6.30.  A  course  of  industrial  edu- 
cation is  provided  for  girls  over  six :  this  was  formerly 
in  charge  of  Herr  Roesicke's  daughter.  The  firm 
furnishes  the  material,  which  is  taken  home  by  the 
children  when  worked  up.  The  wishes  of  the  parents 
are  respected  as  to  what  their  children  shall  learn,  so 
far  as  possible,  in  these  two-hour  lessons  on  Wednesday 
and  Saturday  afternoons.  The  "  Family-House  "  ac- 
commodates this  school  as  well  as  the  kindergarten,  a 
reading-room  and  library.  Billiards,  cards  and  other 
games  are  provided.  The  house  (built  at  a  cost  of 
20,000  m.,  and  supported  at  an  annual  expense  of 
5,000  m.)  is  open  to  the  families  of  workmen  as  well 
as  to  the  workmen  themselves :  bathing  facilities  are 
found  in  an  adjoining  building.  Retired  workmen 
are  employed  here,  as  far  as  may  be. 

The  council  allows  loans  from  the  Support  Fund 
for  desired  improvements  in  the  workmen's  houses. 
Allotments  of  land,  from  one  sixth  to  one  half  of  an 
acre  in  size,  are  made  to  workmen  who  wish  to  raise 
their  potatoes  and  other  vegetables ;  ninety-seven  fam- 
ilies could  do  this.  The  firm  ploughs  the  land  and 
supplies  dressing  from  the  factory  free. 

The  Brothers  Heyl,  in  their  dye  works  at  Charlotten- 
burg,  a  suburb  of  Berlin,  formerly  gave  special  attention  to 
the  practical  education  of  children  belonging  to  the  estab- 
lishment. Under  the  careful  superintendence  of  Frau  H. 
Heyl  great  pains  are  taken  for  them  from  their  first  en- 
trance into  the  world.  The  woman  in  childbed  is  supported 
free  with  nourishing  food  (the  husband  getting  his  meals  at 
the  factory  restaurant)  for  a  fortnight  by  Frau  Heyl  and 


WELFARE-INSTITUTIONS  IN  GERMANY      109 

her  assistants  (the  former  has  written  a  pamphlet  on  the 
care  of  infants,  which  she  distributes  among  the  workmen's 
families).  Apparatus  for  sterilizing  milk  and  other  utensils 
for  preparing  food  for  children  who  cannot  be  suckled  by 
their  mothers  are  provided  free  of  expense  :  in  1887,  eigh- 
teen women  were  thus  attended. 

The  heads  of  the  works  believe  that  one  cannot  begin  too 
early  in  imparting,  by  natural  and  attractive  methods,  a 
practical  knowledge  of  housekeeping  and  other  useful  arts. 
So  they  established  modest  institutions,  the  Madchenheim 
for  girls  and  the  Knabenheim  for  boys,  with  this  end  in 
view  (these  have  lately  been  adopted  by  the  town,  but  I 
describe  them  as  they  were  operated  by  the  firm).  The 
children  learn  these  useful  matters  after  ordinary  school 
hours.  The  little  girls  are  first  taught  elementary  things 
in  a  separate  room  of  the  Knabenheim,  and  are  afterward 
transferred  to  the  small  workman's  house,  well  furnished 
for  the  purpose,  and  they  have  an  outdoor  resort  under  the 
trees.  Every  household  operation  is  carefully  and  system- 
atically taught  from  the  beginning,  the  processes  being 
thoroughly  exemplified  and  the  reasons  for  them  plainly 
given.  But  all  is  done,  not  in  the  way  of  set  lessons,  but 
after  the  manner  of  a  happy  family  life  in  which  little  gills 
take  pleasure  in  doing  what  their  elders  do,  making  the 
most  agreeable  kind  of  play  out  of  the  imitation.  Thor- 
oughly organized  as  the  Madchenheim  is,  formality  is  not 
visible ;  everything  done  is  to  be  as  far  as  possible  'from 
task-work.  For  instance,  the  girls  cook  a  meal  at  five 
o'clock  for  the  boys  of  the  Knabenheim :  the  girls  wait  on 
the  table  and  the  boys  are  not  chary  of  their  compliments 
on  the  excellent  cooking  and  service !  The  happiest  results 
have  followed  from  this  highly  practical  combination  of 
work  and  play,  for  some  two  dozen  children,  under  the 
superintendence  of  a  well-trained  woman  head :  the  cost  to 
the  firm  is  about  1,000  m.  a  year. 

The  A-B-C  of  industrial  life  is  equally  well  taught,  and 
pleasantly  learned  by  the  boys  of  the  works,  between  six  and 


110  A  DIVIDEND   TO  LABOR 

fourteen  years  old,  on  afternoons  free  from  school,  from 
two  o'clock  until  six.  The  Knabenheim  is  an  educational 
family  community,  like  the  other,  in  which  a  sense  of  honor, 
truthfulness  and  faithfulness  are  learned  as  well  as  a  know- 
ledge of  practical  arts  pertaining  to  the  house,  to  clothing, 
gardening  and  so  on.  The  tasks  are  changed  every  week. 
Besides  the  woman  head  of  the  Heim  (a  comfortable  little 
building)  there  are  engaged,  as  need  is,  a  shoemaker,  a  car- 
penter, a  bookbinder,  a  gardener,  a  soldier  (for  drill)  and 
other  teachers.  Excursions  in  the  country  round  about, 
singing  and  amateur  theatricals  vary  the  informal  exercises 
of  the  Heim  :  there  is  a  gymnastic  apparatus  and  a  garden 
to  work  in.  The  boys  themselves  keep  monthly  accounts  of 
their  doings,  entering  their  little  wages  occasionally  earned 
(by  pfennige),  which  are  put  into  savings-books.  At  con- 
firmation each  boy  receives  thirty  marks  for  a  new  suit  of 
clothes.  Much  is  made  of  economy  by  the  teachers  :  every- 
thing is  mended  that  can  be,  and  nothing  is  wasted :  the 
art-idea  also  comes  to  the  front,  from  the  Froebel-occupations 
up  to  the  highest  tasks  given  out  to  the  twenty-four  boys. 
A  Christmas  festival  unites  all  the  members  of  the  works. 
The  annual  cost  of  the  Knabenheim  is  about  1,100  m. 
Bathing  facilities  are  abundant  and  convenient  for  the 
workmen  and  their  families. 

The  housekeeping  of  the  employees  has  been  very  favor- 
ably influenced  by  these  two  "  Homes."  Another  step  in 
the  same  direction  is  a  continuation  of  the  half-year  in  the 
Madchenheim  for  some  of  the  girls  in  the  factory  restau- 
rant (Kantine).  Though  the  parents  of  these  rather  back- 
ward or  undocile  girls  are  not  easily  convinced  of  the  need 
of  this  supplementary  training,  it  is  of  much  use  to  them  in 
their  later  life,  in  the  factory  or  in  service. 

At  his  leather  works  in  'Worins,  and  the  connected 
factories,  Herr  C.  Heyl  employs  3,902  persons.  This 
house  is  an  excellent  example  of  the  large  and  gradual 
development   of   institutions  for   the  workpeople,  as 


WELFARE-INSTITUTIONS  IN  GERMANY      111 

their  number  increases.  In  Dr.  Post's  volume  (1893) 
some  six  or  seven  arrangements  are  described ;  in  the 
firm's  large  quarto  pamphlet  of  1896  (corrected  to 
January  1, 1899),  particulars  are  briefly  given  of  more 
than  thirty.  I  will  summarize  them  still  more  briefly. 
Ilerr  Heyl  has  a  Sparkasse  which  at  the  close  of  1898 
held  on  deposit  360,862  m.,  one  third  of  which  was 
deposited  that  year ;  a  Sparverein  for  young  people, 
with  deposits  amounting  to  66,928  m. ;  a  Pfennig- 
sparkasse,  receiving  303  ra.  in  1898 ;  an  advance 
fund  for  loans  up  to  170  m.  free  of  interest,  which 
loaned  18,584  m.  :  a  pension  fund,  founded  and  sup- 
ported by  the  house,  paying  out  24,511  m.  last  year; 
a  widows'  fimd,  expending  6,430  m. ;  and  a  support 
fund  of  25,000  m.  given  by  Herr  Heyl,  and  adminis- 
tered by  a  mixed  committee.  The  Beamte  whose  sal- 
aries run  from  2,000  to  5,000  m.  receive  from  the  firm 
one  half  of  the  premiums  on  Kfe  insurance  policies  of 
8,000  to  16,000  m. ;  accident  insurance  is  free  for  the 
Beamte  not  coming  under  the  German  law.  Com- 
pulsory and  voluntary  sick  funds  are  also  found  here ; 
a  kindergarten  with  130  pupils ;  a  sewing-school, 
counting  148  female  workers  in  eight  classes ;  and  a 
cooking-school  of  70  pupils  in  six  groups.  A  fund  of 
110,000  m.  has  been  given  to  the  city  of  Worms  for 
education  of  poor  children ;  provisions,  groceries,  coal 
and  beer  are  sold  at  cost  (345,500  m.  worth  in  1898)  ; 
there  is  a  dining-hall  for  supplying  meals  at  cost ; 
coffee-houses  run  on  the  same  plan.  There  is  a  boys' 
chorus,  and  vocal  and  instrumental  associations.  In 
the  four  bath-houses  91,809  baths  were  taken  in  work- 
hours  ;  700  bicycles  have  been  bought  for  employees, 
to  be  paid  for  in  two  years ;  the  firm  takes  pains  to 


112  A   DIVIDEND   TO  LABOR 

improve  the  breed  of  goats,  many  of  which  are  kept 
by  the  employees ;  clothes-closets,  washing  facihties, 
food-warmers,  a  reading-room,  free  copies  of  the 
Worms  "  Zeitung,"  continue  the  list  to  lectures  and 
festivals  in  the  great  Vereinshaus.  On  account  of  the 
disturbance  of  regular  work  by  commercial  and  indus- 
triar  causes,  the  house  has  a  system  of  wages  for  the 
unemployed  (Wartegeld).  This  help  is  given  first  to 
unmarried  women,  in  such  a  way  as  to  aid  the  mar- 
ried force ;  married  men  with  children  are  considered 
next :  the  Wartegeld  recipients  are  frequently  changed, 
so  that  many  may  benefit ;  in  the  last  four  years  this 
expenditure  has  varied  from  2,184  m.  to  11,220  m. 
Finally,  in  1897,  the  house  estabhshed  a  fund  to  facil- 
itate the  acquirement  of  homes,  of  which  130  persons 
have  already  availed  themselves. 

The  iron  works  Marienhiitte  near  Kotzenau,  the 
head  of  which  is  Rittmeister  Schlittgen,  has  a  work- 
men's council,  established  in  1874,  in  which  the  pro- 
prietors are  not  even  represented.  The  choice  of  the 
members  is  entirely  in  the  hands  of  the  workmen,  as 
well  as  the  entire  conduct  of  the  meetings  of  the  Aus- 
schuss.  The  council  meet  in  a  pleasant  room  provided 
by  Herr  Schlittgen:  on  one  side  hangs  a  portrait 
of  the  Kaiser :  on  the  other,  one  of  Herr  Schlittgen, 
bought  by  the  workmen.  The  council  has  the  usual 
powers  of  such  bodies,  and  it  also  has  the  right  to 
express  its  approval  or  disapproval  of  marriages  in 
the  force.  Only  one  instance  has  been  known  in  a  long 
series  of  years  of  refusal  to  obey  the  council :  this  was 
naturally  followed  by  the  dismissal  of  the  offender. 

The  following  entry,  taken  from  the  records  of 
the  coimcil,  details  the  action  of  the  session  of  March 


WELFARE-INSTITUTIONS  IN  GERMANY      113 

3,  1876 :  it  will  give  somewhat  of  an  idea  of  the  tone 
of  these  meetings :  "  In  to-day's  session  of  the  Aelte- 
stenkollegium,  workman  P.  complained  that  work- 
man T.  had  injured  him  by  common  scolding  in  a 
public  house.  T.,  questioned  whether  and  why  he  had 
done  this,  declares  he  knows  nothing  thereof:  but 
afterward  he  confesses  that  he  might  have  done  this, 
as  he  was  then  somewhat  drunk.  P.  declares  that  he 
would  be  satisfied  if  he  receives  an  apology  from  the 
offender:  T.  is  called  upon  to  give  his  hand  to  the 
complainant  and  to  ask  his  pardon,  which  was  done  in 
presence  of  the  council.  —  Smith  R.,  again  released 
from  imprisonment,  asks  to  be  received  to  work  again. 
The  council  decides  by  seven  votes  to  four  that,  in 
consideration  of  his  needy  condition,  he  may  receive 
employment,  as  an  exception,  if  the  management  of 
the  foundry  agrees ;  he  shall  not  be  placed  in  a  work- 
shop, but  simply  be  a  transient  workman  (Platzarbei- 
ter),  in  any  case." 

The  Marienhiitte  maintains  a  continuation  school 
for  apprentices  twice  a  week  from  five  o'clock  to  seven 
p.  M.,  a  system  of  baths,  and  a  club-house  situated  in 
grounds  of  several  acres.  The  building  contains  a  haU 
seating  500  persons,  in  which  lectures  are  delivered 
monthly,  and  social  meetings  are  held,  and  concerts 
given  by  the  workmen's  musical  organizations,  the 
Gesangverein,  and  the  Marienhiitte  Kapelle.  The 
library  is  increased  by  250  volumes  a  year.  The 
profits  of  the  cooperative  store  fall  to  the  other  wel- 
fare-institutions. Herr  Schlittgen  believes  heartily 
in  the  personal  contact  of  employer  and  employed. 
"  What  is  given  to  the  workpeople  shoidd  not  be 
given  with  condescension :  the  manner  in  which  it  is 


114  A   DIVIDEND  TO  LABOR 

given   is   of   consequence :    human    sympathy  should 
plainly  appear." 

Kiibler  und  Niethammer,  paper  manufacturers  at 
Kriebstein,  near  Waldheim,  Saxony,  are  a  good  ex- 
ample of  German  firms  with  numerous  small  and  distinc- 
tively "  patriarchal  "  arrangements  for  the  welfare  of  their 
force.  A  household  school  for  girls,  a  Turnverein  of  fifty 
members  and  a  Gesangverein  find  quarters  in  a  homelike 
building,  surrounded  by  a  garden,  where  two  kindergar- 
tens are  also  located,  one  for  children  of  the  Beamte,  and 
one  for  those  of  the  workmen.  Some  twenty  younger 
children  of  school  age  (over  six)  do  household  tasks  in  the 
forenoon,  and  play  with  the  kindergarten  children  in  the 
afternoon.  A  library  for  young  people  is  in  the  same  build- 
ing. The  annual  Sedan  festival  is  a  time  of  rejoicing  for 
all  these  children :  they  take  part  in  a  procession,  enjoy 
refreshments,  and  receive  small  presents,  as  they  also  do  on 
St.  Nicholas'  day.  Wedding  Bibles,  song-books,  handsome 
savings-books,  and  gifts  to  women  in  childbed  (25  m.  if 
she  has  been  a  year  in  the  mills  :  she  cannot  return  to  work 
for  four  weeks)  are  minor  matters.  More  important  are 
the  full  payment  of  school  fees  by  the  firm  for  parents  who 
have  M'orked  two  years  ;  if  the  parents  have  served  ten 
years,  they  receive  30  m.  at  the  confirmation  of  each  child : 
the  married  man  on  military  service  receives  two  thirds  of 
his  usual  wages.  A  Cautionscasse  is  a  feature  of  these 
mills.  Every  workman  must  deposit  in  this  security  fund 
5  pf.  in  a  mark  of  wages  each  week  until  he  has  from  10 
to  20  m.  to  his  credit :  for  women,  girls  and  boys  under 
sixteen  the  sum  is  5  m.  When  the  deposit  is  fully  paid,  it 
receives  10  per  cent,  interest,  but  if  a  workman  leave  the 
mills  without  giving  notice,  his  deposit  goes  to  the  sick 
fund. 

An  Alsatian  house  dating  from  1746  is  very  nota- 
ble for  the  thoroughness  and  generosity  with  which  it 


WELFARE-INSTITUTIONS  IN  GERMANY      115 

has  steadily  developed  from  the  first  a  system  of  wel- 
fare-institutions. It  is  now  an  incorporated  company 
under  the  name  Soci6te  Anonyme  d'Industrie  Tex- 
tile ci-devant  DoUfus-Mieg  et  Cie.  It  carries  on  all 
branches  of  its  general  business,  at  Muhlhausen  (Mul- 
house),  Dornach  and  Belfort,  employing  over  2,600 
persons,  and  paying  out  more  than  two  million  francs 
annually  in  wages.  M.  Jean  DoUfus,  who  died  in 
1887,  was  at  the  head  of  the  house  for  sixty-one  years. 
His  chief  stroke  of  philanthropy  was  the  foundation 
of  the  workmen's  cities,  cites  ouvrieres^  at  Mulhouse. 
His  son-in-law  and  successor,  M.  F.  Engel- DoUfus,  was 
a  worthy  follower.  He  was  one  of  the  founders,  in 
1851,  of  the  Society  for  the  Encouragement  of  Savings 
which  built  a  home  for  old  men  at  Mulhouse,  and 
pays  retiring  pension^  for  many  workmen.  He  erected 
at  Dornach  the  building  which  has  become  the  head- 
quarters of  organized  charity,  and  a  hall  for  lectures, 
concerts  and  gymnastics,  with  a  library  of  4,000 
volumes.  His  "  Association  for  Preventing  Accidents 
in  Factories  "  has  fortunately  had  numerous  imita- 
tors. A  dispensary  for  sick  children  at  Mulhouse  ;  a 
triennial  exhibition  of  paintings,  and  the  new  museum 
of  the  Societe  Industrielle  are  illustrations  of  what  he 
called  '■''practical  socialism  .  .  .  the  good  socialism 
which  consists  in  anticipating  legitimate  claims :  let 
us  view  those  claims  not  from  the  legal  standpoint, 
but  from  our  sentiment,  our  heart,  and  our  judgment." 
M.  Engel-DoUfus  held  that  "  sickness,  incapacity 
for  labor  and  old  age  are  certain  elements  in  the  life 
of  the  workingman,  and  they  can  be  reduced  to 
figures :  we  should  combat  these  evils  with  instru- 
ments as  certain."     His  calculation  was  that  beyond 


116  A  DIVIDEND   TO  LABOR 

his  daily  wages  the  workman's  needs  are  as  follows: 
1  per  cent,  (on  wages)  for  infant,  industrial  and  train- 
ing schools  ;  1  per  cent,  for  improved  lodging  ;  4  per 
cent,  for  mutual  aid  in  case  of  sickness  and  death ; 
one  half  of  1  per  cent,  for  women  in  confinement ; 
the  same  percentage  for  life  and  accident  insurance, 
and  3  per  cent,  for  retiring  pensions.  Of  the  total 
10  per  cent.,  3  per  cent,  may  fairly  be  demanded  of 
the  workingman,  in  savings  toward  a  home,  and  aid 
or  retiring  funds.  The  remaining  7  per  cent,  should 
be  charged  to  the  firm.  In  the  DoUfus-Mieg  house 
the  various  paternal  institutions  are  supported  chiefly 
by  the  interest  on  a  fund  known  as  the  compte  de 
reserve  ouvriere.  This  reserve  amounted  to  786,000  fr. 
in  1889.  On  the  incorporation  of  the  business  the 
former  partners  endowed  the  company  with  1,000,- 
000  fr.  (afterwards  increased  to  1,100,000  fr.)  for 
the  philanthropic  institutions  and  pensions.  In  1898 
these  expenses  were  151,000  fr.,  of  which  44,000  fr. 
were  met  by  the  interest  on  the  endowment,  and  107,- 
000  fr.  were  a  levy  on  the  profits  —  making  together 
a  bonus  of  7  per  cent,  on  the  wages  paid.  In  addition 
the  company  in  1898  paid  out  35,000  fr.,  in  accord- 
ance with  the  German  laws  providing  for  accident  and 
old  age  insurance  and  sick  aid.  It  was  one  of  five 
firms  in  Miihlhausen  to  establish  a  life-insurance  fund 
for  its  workmen.  In  1890,  under  1,000  fr.  policies, 
140  persons  were  insured,  half  the  premium  being 
paid  from  the  fund  —  a  practice  also  followed  with 
respect  to  fourteen  policies  held  by  workmen  in  regu- 
lar companies.  In  1865  the  house  established  a  free 
collective  fire  insurance  on  the  furniture  of  the  work- 
men, 380  being  insured  in  1890  for  697,400  fr. 


WELFARE-INSTITUTIONS  IN  GERMANY      117 

The  Societe  Mulhousienne  des  Cites  Ouvrleres,  of 
which  M.  Jean  Dollfus  was  the  lifelong  president, 
renounces  all  profits  in  providing  homes  for  workmen, 
and  claims  but  four  per  cent,  interest.  The  employee 
pays  two  or  three  hundred  francs  down  (the  com- 
pany will  advance  this  sum  if  requested),  enters  into 
possession,  and  makes  a  monthly  payment  which  leaves 
him  in  thirteen  years  full  owner.  From  1853  to 
December  31,  1888,  the  number  of  houses  thus  built 
and  sold  was  1,124  ;  in  these  thirty-five  years  the 
workmen  paid  in  4,584,021  fr.,  and  there  were  due 
424,949  fr. 

The  Societe  d'Encouragement  a  I'Epargne  associated 
the  employers  and  workmen  of  eleven  establishments 
in  Miihlhausen  in  order  to  provide  retiring  pensions 
for  employees.  The  latter  were  to  contribute  3  per 
cent,  on  wages  and  the  employers  a  sum  equal  to  2 
per  cent.  After  some  years  most  of  the  workmen  and 
finally  all  refused  to  subscribe  ;  but  the  manufacturers 
kept  on  as  before.  DoUfus-Mieg  et  Cie  contribute 
35,000  fr.  annually,  and  148  of  their  workmen  re- 
ceive pensions  varying  from  120  to  600  fr.  A  sav- 
ings fund  receiving  deposits  above  5  fr.  and  paying 
5  per  cent,  interest  has  been  more  successful.  There 
are  329  depositors,  and  403,638  fr.  on  deposit.  The 
house  contributes  5,800  fr.  as  supplementary  interest. 

The  long  roll  of  the  philanthropic  institutions  of 
this  great  corporation  embraces  two  refectories,  where 
the  workmen's  food  is  prepared  for  them,  the  larger 
having  88  tables  for  600  persons ;  a  connection  with 
the  maternity  society  in  Miihlhausen  at  an  expense 
of  4,000  fr.  a  year ;  and  an  infant  school  at  Dornach 
for  200  children,  costing  10,000  fr.  annually.     Every 


118  A   DIVIDEND   TO  LABOR 

year  35,000 fr.  are  allowed  for  these  other  services: 
the  distribution  of  bread,  meat  and  wine  to  sick  and 
needy  workpeople ;  the  furnishing  of  fuel  in  severe 
weather  and  of  refreshing  drinks  in  the  workshops  in 
times  of  extreme  heat ;  extraordinary  pensions,  and 
special,  immediate  assistance ;  aid  to  young  men  in 
college ;  and  the  expenses  of  some  twenty  sick  work- 
men sent  to  watering-places.  Lesser  philanthropies 
are  a  hall  and  garden  for  the  boys  and  girls  during 
the  legal  play-hours,  waiting-rooms  and  clothes-rooms. 
Finally,  to  pass  from  small  things  to  great,  a  fund 
of  400,000  fr.  was  estabhshed  in  1883  by  the  widow 
of  M.  Engel-DoUfus  and  the  three  partners  in  the 
house.  One  half  of  this  sum  was  divided  among  the 
older  employees,  according  to  their  ages,  wages  and 
services  rendered.  The  portions  ranged  from  250  fr. 
to  10,000  fr.,  and  bore  interest  at  4  per  cent.  The 
other  half  went  to  constitute  pensions,  to  which  the 
pensioners  contributed  according  to  their  incomes.  In 
August,  1890,  this  provident  and  retiring  fund 
amounted  to  520,000  fr.,  and  nimibered  138  partici- 
pants. 

I  do  not  wish  to  enter  here  into  discussion  of  the 
motives  which  lead  various  classes  of  German  employ- 
ers to  support  the  many  and  various  welfare-institu- 
tions which  I  have  just  summarized.  It  goes  without 
saying  that  of  the  three  kinds  of  patronage  which  M. 
E.  Cheysson  names  in  his  able  report  on  the  subject, 
—  the  mihtary,  the  patriarchal,  and  the  liberal,  — 
only  the  last  can  commend  itself  to-day  to  the  Eng- 
lish or  the  American  workman.  Of  the  employers  of 
the  first  variety,  the  "  colonels,"  as  M.  Cheysson  calls 


WELFARE-INSTITUTIONS  IN  GERMANY      119 

tliem,^  Baron  von  Stumm  of  Harlenberg  on  the  Saar, 
is  perhaps  the  most  prominent  example  to-day.  This 
"  coal  king  "  is  called,  the  leading  spirit,  in  the  Reich- 
stag, of  the  party  of  political  and  social  reactiona- 
ries, the  "  Schiirfmacher."  Baron  von  Stumm  builds 
houses  and  has  "  colonies  "  for  the  workmen  in  his  coal 
mines  and  iron  factories ;  he  gives  Hberal  premiums, 
and  has  estabhshed  a  library  in  his  works.  But  he 
"  fights  the  Social  Democrats,  and  allows  his  working- 
men  no  liberty  in  thought  or  action."  During  a  recent 
debate  in  the  Reichstag,  he  denied  that  anything  more 
is  needed  for  improving  the  condition  of  the  laboring 
classes,  and  "  stood  out  for  even  abridging  their  pre- 
sent rights  and  benefits." 

I  presume  that  very  few,  if  any,  of  the  employers 
whose  Uberalities  are  described  in  this  chapter  sym- 
pathize with  Baron  von  Stumm.  The  great  majority 
would  rank  in  M.  Cheysson's  other  two  classes  ;  many, 
probably,  among  the  "  patriarchs."  It  has  not  been 
my  concern,  however,  to  analyze  the  motives  of  the 
employer :  what  he  has  done  has  interested  me  much 
more  than  his  political  or  social  creed.  My  readers 
will  remember  that  the  instances  here  given  of  welfare- 
institutions  have  been  selected  as  the  most  important 
or  interesting,  while  a  much  larger  number  have  not 
been  even  mentioned  by  name,  like  the  Austrian  owner 
of  the  metal  works  at  Berndorf ,  who  has  had  a  theatre 
built  for  his  employees,  where  a  company  from  Baden 
is  to  play  twice  a  week. 

^  "  The '  colonels '  hold,  above  all,  to  their  authority ;  their  workers 
are  their  regiment ;  they  grant  (octroient)  their  liberalities,  more  than 
give  them ;  they  do  so  because  it  is  their  good  pleasure ;  they  dis- 
pense with  gratitude  in  those  whom  they  oblige."  {Rapport  sur  les 
Institutions  Patronales,  Exposition  de  1889,  p.  35,  Paris,  1892.) 


120  A   DIVIDEND   TO  LABOR 

The  magnitude  of  the  general  movement  may  be 
inferred  from  these  two  facts :  "  Das  Yolkswohl,"  of 
Dresden,  edited  by  Dr.  V.  Bohmert  and  Dr.  Paul 
Scheren,  in  its  first  issue  for  1899  gives  a  detailed 
"  roll  of  honor  "  of  German  corporations.  According 
to  votes  passed  by  58  industrial  companies,  sums 
amounting  to  nearly  2,000,000  m.  were  appropriated 
for  the  benefit  of  their  employees  in  the  last  six 
months  of  1898.  Of  this  amount  statutory  pensions 
took  896,000  m. ;  and  free-wiU  gifts  978,472  m.  The 
Berlin  "  Arbeiterfreimd,"  in  a  similar  list,  reports  the 
gifts  and  foundations  made  by  105  corporations  and 
37  private  employers,  during  the  first  two  months 
of  1899,  to  have  been  5,804,317  m.i  Of  this  great 
sum,  not  far  from  one  haK  went  to  pension  and  aid 
fimds  and  foundations  statutory  and  private ;  nearly 
one  quarter  for  premiums,  rewards  and  bonuses  on 
wages  ;  children's  institutions  claimed  330,000  m. ; 
dwelling-houses  nearly  300,000  m. ;  and  art  education 
150,000  m.  The  journals  mentioned  are  not  the  only 
ones  devoted  largely  to  welfare-institutions.  There  is  a 
Zentralstelle  of  information  and  help  in  Berlin  which 
publishes  a  considerable  literature.  The  great  impor- 
tance of  the  movement  in  Germany  will  be  apparent 
without  further  detail. 

^  Neither  of  these  lists  of  corporations  contains  a  name  given  in 
this  volume. 


CHAPTER  V 
PATRONAL  INSTITUTIONS   IN   FRANCE 

The  most  striking  feature  of  "  patronal  institu- 
tions" in  France  is  the  great  development  of  tlie 
insurance  of  workingmen,  in  all  its  varieties.  Com- 
pulsory insurance  is  provided  by  statute  for  mine 
employees  only  (law  of  June  29,  1894).  The  State 
makes  incumbent  upon  all  mine  operators  the  same 
kind  of  insurance  already  provided  by  a  large  number 
of  collieries.^  Old  age  and  sickness  are  made  the 
objects  of  two  distinct  arrangements.  To  meet  the 
former  need  the  employer  is  required  to  contribute  a 
sum  equal  to  two  per  cent,  at  least  on  wages  to  some 
fund  for  the  purpose  (usually  the  Caisse  Nationale 
des  Retraites  pour  la  Vieillesse,  estabHshed  in  1850), 
and  also  two  per  cent,  retained  from  wages.  The 
State  makes  no  contribution,  but  the  Caisse  Nationale 
takes  charge  of  the  entire  matter,  receiving  these  sums 
for  collective  insurance  from  the  employers,  investing 
them,  and  paying  the  pensions.^  The  advantages  thus 
gained  in  security  and  independence  for  the  workman 
are  obvious. 

This  state  action  only  supplements  a  great  variety 
of  purely  voluntary  insurance  schemes  in  which  French 

^  In  several  cases  that  follow  I  hare  written  of  the  earlier  practice 
of  mining  companies. 

^  See,  for  full  details,  chapter  iv.  of  the  one  comprehensive  work  on 
the  subject  in  English,  by  Mr.  W.  F.  Willoughby,  Working  men's 
Insurance,  on  such  insurance  in  France. 


122  A   DIVIDEND   TO  LABOR 

employers  of  labor  easily  lead  the  world.  In  other 
industries  than  mining,  the  State  Fund  is  equally 
open  to  the  great  number  of  firms  that  practice  col- 
lective insurance  of  all  their  employees  on  the  same 
lines  as  the  mining  companies :  the  French  statute 
was,  indeed,  little  more  than  a  copy  of  the  rules  of  the 
great  Anzin  mines.  "  It  is  impossible,"  says  Mr. 
WiUoughby,  "  to  overestimate  the  importance  of  this 
kind  of  insurance.  .  .  .  From  every  point  of  view  the 
collective  insurance  of  workingmen  is  of  the  greatest 
importance.  ...  It  would  be  impossible  even  to  make 
a  list  of  the  large  concerns  in  France  which  maintain 
insurance  funds  for  their  employees  ...  to  an  extent 
and  of  an  excellence  that  are  found  in  no  other  coun- 
try in  the  world.  .  .  .  Their  number  would  probably 
run  into  the  thousands." 

The  seven  railway  systems  which  include  nearly  all 
the  French  lines  offer  the  supreme  example  of  the 
insurance  plan.  Of  these,  the  Orleans  Company  occu- 
pies a  peculiar  position,  as  the  State  guarantees  a  cer- 
tain dividend  to  stockholders,  and  allows  the  company 
to  class  the  allotment  for  pensions  (ten  per  cent,  on 
wages)  under  "working  expenses,"  the  employee  mak- 
ing no  contribution.  As  I  have  previously  described 
the  profit-sharing  experience  of  this  road,^  and  Mr. 
Willoughby,  in  his  excellent  volume  on  "Working- 
men's  Insurance,"  has  given  many  details  of  the 
insurance  scheme  of  the  Western  Company  (essen- 
tially the  same  as  that  practiced  by  the  five  other 
companies),  I  will  confine  my  account  mainly  to  the 
Paris,  Lyons  and  Mediterranean  System,  the  largest 

^  Profit  Sharing  between  Employer  and  Employee,   chapter  v.  pp. 
213-222. 


PATRON AL  INSTITUTIONS  IN  FRANCE     123 

of  all.  In  1889  this  company  contributed  6  per 
cent,  on  wages  for  old-age  pensions ;  the  other  lines 
vary  from  5  to  8  per  cent. ;  since  1887  most  of  them 
have  had  to  raise  the  percentage.  The  Lyons  Com- 
pany (to  designate  it  briefly)  retains  4  per  cent,  of 
its  employees'  wages  for  the  same  purpose,  the  others 
from  3  to  5.  The  contribution  from  the  men  is  usually 
paid  into  the  Caisse  Nationale  in  special  accounts,  the 
personal  property  of  the  employees.  The  contribution 
from  a  company  is  paid  into  a  special  fund,  or  the 
National  Bank ;  both  contributions  may  go  into  either. 

In  1894  there  were  56,760  persons  insured  be- 
longing to  the  Lyons  system.  The  receipts  were, 
from  workingmen,  rf949, 349.24  :  from  the  company, 
$1,890,304.72  :  from  interest  and  other  sources, 
$907,420.77— a  total  of  13,747,074.73.  In  this 
year  11,089  persons  received  pensions,  to  the  extent 
of  $2,477,559.53,  the  administration  and  other  ex- 
penses amounting  to  $99,046.06,  and  the  assets  at 
the  end  of  the  year  being  $22,096,667.08.  The  pen- 
sion begins  after  fifty-five  years  of  age  or  twenty-five 
years  of  service,  the  provisions  being  liberally  con- 
strued. It  is  calculated  to  equal  2  per  cent,  of  the 
average  wages  for  all  years  of  contribution,  but  cannot 
exceed  $2,400  in  any  case.  One  half  of  the  pension 
is  transferred  to  the  widow,  if  the  pensioner  was  mar- 
ried five  years  before  leaving  the  service.  Orphan 
children  receive  the  same  amount,  equally  divided 
among  them  and  paid  to  them  when  they  reach  eigh- 
teen years  of  age.  If  an  employee  leaves  the  service, 
his  deposits  are  returned  to  him,  without  interest. 

The  company  lodges  free  aU  employees  who  are 
obliged  to  live  near  the  station  or  the  workshop.     At 


124  A   DIVIDEND   TO  LABOR 

Laroche  it  has  built  thirty-three  houses  for  its  workers, 
realizing  about  3|  per  cent,  in  gross  rental:  only  10 
per  cent,  of  the  lot  is  built  upon.  Each  employee,  on 
entrance  into  the  service,  is  examined  by  a  physician, 
and  receives  a  certificate  stating  his  sanitary  condition 
and  the  special  employment  for  which  he  would  be 
fitted.  If  his  wages  are  less  than  $600  per  year,  he 
has  free  medical  attendance.  He  is  entitled  to  half- 
pay  during  iUness,  or  to  full  pay  if  the  sickness  or 
injury  was  caused  by  the  service.  Twelve  days'  vaca- 
tion are  allowed  those  employees  who  do  not  have 
their  Sundays  and  holidays  free.  The  company  allows 
for  travehng  expenses  on  its  service :  it  provides  for 
accident  insurance,  and  makes  a  yearly  contribution 
to  the  mutual  aid  society  of  its  men. 

The  Orleans  System  makes  special  grants  in  money 
and  in  kind  to  sick  or  injured  employees :  this 
amounted  to  $109,644  in  1886  :  it  has  stores  at  five 
principal  points  whence  provisions,  clothing,  etc.,  are 
dehvered  at  low  prices  anywhere  on  the  lines :  a 
refectory  and  a  bakery  are  kept  up  in  Paris,  near  the 
shops ;  evening  classes  for  workmen  and  apprentices 
are  supported,  and  a  school  and  workshop  for  girls. 
The  Northern  Railway  has  spent  1,700,000  fr.  in 
building  houses  for  workmen,  on  which  it  reahzes 
about  2^  per  cent,  gross.^ 

The  most  fully  developed  example  of  patronal  insti- 
tutions in  France,  as  Mons.  H.  Brice  says  in  his  vol- 
mne  on  this  subject,  is  that  set  by  the  Coal  Mines 

^  See  "  Les  Institutions  de  Pr^voyance  des  g^andes  Compag'nies  de 
Chemins  de  Fer "  in  the  Bulletin  de  la  Participation  for  1898,  4"" 
livraison ;  and  in  the  Bulletin  of  the  Department  of  Labor,  No.  20, 
"  Condition  of  Railway  Labor  in  Europe,"  by  W.  E.  Weyl,  Ph.  D. 


PATRON AL  INSTITUTIONS  IN  FRANCE     125 

of  Blanzy,  situated  in  the  department  of  Saone  et 
Loire,  eighteen  miles  south  of  Autun.  The  company, 
Jules  Chagot  et  Cie,  employs  some  8,000  men  and 
mined  more  than  1,100,000  tons  of  coal  in  1892-93. 
According  to  its  important  "  Notice  "  of  1894,  a  fine 
quarto  document,  the  cost  of  its  welfare-institutions 
of  all  kinds,  m  the  year  1892-93,  was  1,626,032  fr. ; 
this  amount  did  not  include  lighting  the  streets,  in- 
terest on  the  value  of  the  plant  and  various  minor 
subventions,  the  number  of  which  steadily  increases. 
This  sum  means  that  the  expense  of  extracting  a  ton 
of  coal  was  increased  1.456  fr.  by  the  existence  of 
these  institutions  ;  that  the  average  wages  of  the  work- 
man were  virtually  increased  20  per  cent.,  and  that  the 
whole  cost  was  64.16  per  cent,  of  the  dividend  paid  to 
the  stockholders. 

Since  1834  the  company  has  built  more  than  1,175 
houses  for  its  employees,^  at  an  expense  of  2,574,- 
936  fr. :  the  amount  of  the  annual  rent-roU  is  over 
40,000  fr.,  but  this  is  absorbed  entirely  by  repairs, 
taxes  and  expenses  of  management ;  "  no  attempt  is 
made  to  secure  a  commercial  return  from  the  pro- 
perty." The  rent  of  half  of  a  two-tenement  house, 
the  style  favored  by  the  company,  with  a  good-sized 
garden,  varies  from  41  to  6  fr.  per  month.  The  four 
cites  present  a  very  pleasing  appearance,  with  their 
red  roofs  contrasting  with  the  abundant  green  of  the 
gardens  and  trees.  The  company  sells  land  at  a  low 
price  on  time  payments  :  and  it  formerly  advanced 
1,000  fr.  to  be  paid  within  ten  years,  without  inter- 
est. By  1889  the  sum  of  500,000  fr.  had  been  thus 
loaned,  and  one  sixth  was  still  due :  1,079  workpeo- 
1  Dr.  Gould's  Bepvrt,  p.  357. 


126  A  DIVIDEND   TO  LABOR 

pie,  29  per  cent,  of  the  whole  number,  were  owners 
of  their  homes.  Since  April,  1893,  the  company  has 
made  the  same  advance  to  the  workman  wishing  to 
build,  but  has  modified  its  form.  The  workman  gets 
his  life  insured  on  a  fifteen-years  policy  for  the  sum 
needed  to  build,  and  "  La  Prudence  "  (the  cooperative 
bank  to  be  described  later)  makes  him  a  loan  of  the 
same  size.  The  company's  aid  goes  to  make  the  con- 
ditions of  the  loan  safe  for  the  bank  and  very  easy 
for  the  workman.  In  one  year  113  workmen  availed 
themselves  of  this  new  arrangement  which  makes  the 
poHcy-holder  at  the  end  of  fifteen  years  the  propri- 
etor of  a  house  worth  2,500  fr.,  he  having  paid,  alto- 
gether, in  interest  and  premiums,  only  the  equivalent 
of  ordinary  rent. 

The  Mutual  Aid  Society,  with  7,834  members,  re- 
ceived in  1893,  467,957  fr.,  of  which  the  employees 
paid  219,336  fr.,  and  the  company  215,260  fr.  :  the 
expenses  were  449,004  fr.  While  this  society  gives 
aid  when  wounds  and  illness  have  been  contracted  out- 
side of  the  mines,  or  by  the  fault  of  the  employees, 
and  pays  for  school  supplies  for  the  children,  it  does 
not  provide  retiring  pensions.  The  assessment  on  the 
workman  (ouvrier)  is  2|-  per  cent,  of  his  wages :  on 
the  clerk  (employe)  it  is  1  per  cent,  of  his  salary : 
the  company  contributes  an  equal  amount.  It  pays 
the  fees  of  three  physicians,  the  druggists  and  the 
sisters  nursing  in  the  hospital  and  attending  the  sick 
in  their  homes.  The  hospital,  pharmacy  and  dispen- 
sary buildings  were  furnished  by  the  company,  but  are 
maintained  by  the  society. 

The  company  makes  retiring  allowances  to  all  its 
employees  connected  with  the  mines  after  thirty  years 


PATRON AL  INSTITUTIONS  IN  FRANCE     127 

of  consecutive  service,  and  fifty-five  years  of  age. 
The  pension  may  be  as  large  as  900  fr.  The  375 
pensioners  in  1893  enjoyed  other  privileges  which  are 
estimated  as  equal  to  150  fr.  a  year.  A  similar  fund 
for  clerks  is  supported  by  a  reservation  of  2^  per 
cent,  of  their  salaries,  to  which  the  company  adds  an 
equal  sum.  After  twenty-five  years'  service  and  fifty- 
five  years  of  age,  the  clerk  can  retire  on  his  pension. 
Widows  and  orphans  can  claim  one  half  of  the  de- 
ceased husband's  or  father's  pension.  The  company 
employs  women  and  girls  in  sorting  coal  only :  desir- 
ing to  abolish  the  work  of  women  in  the  mines,  it 
established  a  weaving-mill  which  employed  406  women 
in  1894.  Young  women  receive  instruction  in  handi- 
crafts in  industrial  schools  (ouvroirsy  and  learn  to 
make  and  repair  garments  :  the  355  girls  in  these 
shops  earn  on  an  average  22  fr.  a  month,  besides  learn- 
ing the  trade.  Social  rooms  are  provided  for  women 
and  girls.  The  company  supplies  free  of  charge  all 
the  coal  needed  by  its  men  at  an  expense  of  some 
500,000  fr.  a  year :  it  furnishes  them  the  most  neces- 
sary kinds  of  provisions  and  groceries  at  reduced 
prices,  saving  the  entire  force  more  than  200,000  fr. 
a  year. 

The  interest  of  the  company  in  education  is  great. 
It  supports  fifteen  primary  and  six  infant  schools  for 
6,292  children,  taught  by  118  instructors.  Free  even- 
ing classes  in  the  winter  are  attended  by  200  to  250 
young  persons:  a  drawing  class  is  held  on  Sunday. 
The  original  cost  of  these  schools  was  800,000  fr.,: 
the  expense  of  maintenance  in  1893  was  176,405  fr. 
The  Union  for  Sport  is  an  association  of  a  number 
of  athletic  and  musical  organizations,  all  of  which  are 


128  A  DIVIDEND  TO  LABOR 

subsidized  by  the  company.  The  workmen  have  a  gun 
club,  an  archery  club,  gymnastic  and  fencing  organi- 
zations, two  brass  bands,  and  an  "  artistic  group,"  in 
this  "  Union  Sportif."  The  union  holds  an  annual 
festival:  it  maintains  courses  of  lectures  in  the  winter 
on  history,  economics  and  other  subjects,  and  a  kind  of 
"  traveling  Hbrary  "  system  for  the  different  villages. 
The  patronage  of  the  company  extends  to  the  Physio- 
phile  (a  natural  history  class)  and  a  number  of  young 
people's  societies,  each  of  which  has  its  chorus,  and 
animates  the  miners'  life  with  games,  fetes  and  excur- 
sions. Rooms  and  haUs  provided  for  all  these  societies 
free  of  rent,  as  well  as  contributions  to  the  extent  of 
some  20,000  fr.  a  year,  show  the  interest  of  the  com- 
pany. 

There  is  a  Central  Committee,  under  the  presidency 
of  the  director,  in  which  aU  the  associations  —  educa- 
tional, recreative  and  economic  —  are  represented : 
the  needs  of  the  various  societies  are  discussed  at  the 
monthly  meetings,  and  recommendations  made  for  their 
work.  The  company  favors  individual  initiative 
whenever  it  is  manifested,  and  warmly  desires  to  see 
its  own  "  paternalism  "  superseded  by  the  independent 
action  of  the  workmen  in  the  twenty,  or  more,  organi- 
zations which  it  assists.  Twelve  cooperative  bakeries 
are  in  successful  operation  by  the  employees  :  most  of 
these  are  in  close  relations  with  "  La  Prudence,"  a  very 
important  mutual-credit  institution,  with  shares  of 
60  fr,,  held  by  the  working  force.  Out  of  400  mem- 
bers in  1890,  more  than  350  were  workmen  :  the  capi- 
tal is  80,000  fr.  In  the  council  of  fourteen  members 
eleven  are  workmen.  Primarily  intended  to  aid  in  the 
economic  education  of  the  force,  it  is  now  a  real  bank, 


PATRON AL  INSTITUTIONS  IN  FRANCE     129 

as  well  as  a  headquarters  for  the  economic  life  of  the 
community.  It  controls  two  savings-banks,  one  for 
shareholders  and  one  for  children,  "La  Tire-Lire" 
(money-box),  guaranteed  by  the  company.  "  La  Pru- 
dence "  incites  the  workmen  to  buy  for  cash  in  all  direc- 
tions and  obtains  discounts  for  them :  it  paid  eight 
per  cent,  dividend  in  1889. 

The  many  remaining  beneficences  and  associations 
of  the  company  include  the  support  of  religious  insti- 
tutions (it  has  built  a  church  and  three  chapels)  ;  free 
baths  at  Les  Allouettes,  open  all  the  year  round:  the 
reception  of  deposits  at  five  per  cent,  interest ;  assist- 
ance to  the  society  of  Anciens  Militaires,  to  firemen, 
to  orphan  schools,  and  other  charities  in  the  vicinity ; 
and  other  minor  gifts,  regular  or  irregular.  Wages 
have  had  a  steady  upward  tendency,  while  coal  has 
gradually  fallen,  —  the  company  maintaining  profits 
by  improving  the  processes  of  production.  The  force 
is  comparatively  very  stable  :  one  fifth  has  worked 
more  than  twenty  years,  and  one  twentieth  more  than 
thirty-five  years. 

The  princely  generosity  and  the  long  experience  of 
this  company  with  its  institutions  patronales  impart 
great  weight  to  its  judgment  in  respect  to  the  transfor- 
mation which  it  is  desirable  that  these  should  assume. 
The  company  says  that  it  "  has  always  been  among 
those  who  think  that  an  employer  has  not  cleared 
himself  with  respect  to  his  workpeople  when  he  has 
punctually  paid  them  the  wages  they  have  earned,  but 
that  he  has  social  and  moral  duties  to  fulfill  with  re- 
gard to  them  and  their  families."  The  welfare-institu- 
tions at  Montceau-les-Mines  are  very  many  and  some 
are  of  long  date  (thirty-nine  were  erected  from  1834 


130  A  DIVIDEND   TO  LABOR 

to  1853)  :  but  the  company  found  that  the  system  did 
not  develop  personal  initiative  :  as  the  workmen  did 
not  direct  the  institutions  nor  pay  toward  most  of 
them,  they  were  not  interested  in  them,  and  the  com- 
pany thought  itself  ill  repaid  for  its  well-meant  efforts. 
Instead  of  reacting  into  indifference  toward  the  em- 
ployees, the  company  most  wisely  decided  to  revise  its 
faidty  methods.  It  has  therefore  established  some 
sixty  institutions,  large  or  small,  of  which  the  admin- 
istration is  almost  entirely  in  the  hands  of  the  work- 
people. "  It  was  a  veritable  education  to  be  given, 
.  .  .  and  they  have  rapidly  acquired  it."  Instead  of 
lazily  accepting  the  institutions  devised  for  their  bene- 
fit as  their  right,  they  learn  to  count  on  themselves 
and  to  appreciate  the  liberality  of  the  company  in 
cooperating  with  them.  The  company  is  now  well 
pleased  with  its  methods,  gradually  changing  them,  as 
it  says,  from  patronage  alone  to  patronage  with  asso- 
ciation, and  it  closes  its  "  Notice  "  of  1894  with  these 
manly  words  :  "  We  do  not  at  all  claim  to  have  solved 
the  social  question,  but  we  do  claim  that  we  have  con- 
quered the  confidence  and  even  the  affection  of  a  very 
large  number  of  our  workers,  whence  results  that 
social  peace  we  have  enjoyed  for  a  considerable  space 
of  time.  We  are  ambitious  to  labor  energetically  and 
with  absolute  persistence  to  consohdate  and  develop 
this  peace,  and  we  shall  not  hold  back  from  any  effort 
for  such  success." 

The  Mining  Company  of  Anzin  (dating  from  No- 
vember, 1757)  is  fitly  named  next.  It  employs  over 
10,000  worlanen  in  its  coal  mines  near  Valenciennes 
(Nord).  It  has  given  up  building  workmen's  villages 
on  the  usual  plan,  as  not  conducive  to  health  or  good 


PATRONAL  INSTITUTIONS  IN  FRANCE     131 

morals  ;  up  to  1897  it  had  built  dwellings  for  2,704 
workers,  with  gardens.  These  are  let  for  6  fr.  a  month 
(representing  some  2|  per  cent,  of  the  cost  of  land  and 
buildings),  which  is  about  5  per  cent,  of  the  miner's 
wages.  The  company  keeps  the  houses  in  repair. 
The  workman  wishing  to  buy  a  house  can  pay  the  cost 
price  without  interest  in  monthly  installments,  about 
the  same  in  amount  as  the  rent  usually  paid  in  the 
neighborhood :  ninety-three  men  had  thus  acquired 
homes.  Workmen  who  wished  to  build,  to  the  num- 
ber of  741,  had  received  advances  on  the  same  terms, 
to  the  amount  of  some  1,500,000  fr.,  most  of  which 
had  been  repaid :  the  interest  which  the  company  thus 
declined  would  have  amounted  to  223,800  fr.  Out  of 
70,000  acres  which  its  operations  cover,  the  company 
lets  205  hectares  to  2,500  persons  at  low  rates.  A 
cooperative  store  founded  in  1865  by  the  workmen, 
under  the  auspices  of  the  company,  is  entirely  inde- 
pendent of  it :  the  central  store  has  fifteen  branches : 
out  of  its  profits  it  pays  semi-annually  10  per  cent,  to 
sixty-seven  agents,  and  a  dividend :  the  dividend  to  its 
4,120  members  amounts  to  120  fr.  a  year :  only  one 
or  two  shares  can  be  owned  by  one  person,  at  5  per 
cent,  interest :  the  annual  turnover  is  2,000,000  fr. 
The  Anzin  Company  does  not  now  desire  to  en- 
courage savings  in  its  bank  (3  per  cent,  interest) 
since  the  establishment  of  the  Government  Postal 
Banks:  so  the  deposits  by  1,431  persons  in  1877,  to 
the  amount  of  1,940,000  fr.,  had  fallen  m  1897  to 
273,923  fr.  deposited  by  22G  persons.  Six  mutual 
aid  societies  are  supported  by  the  workmen,  the  ac- 
counts being  kept  by  the  company.  Assessments  on 
the  workers'  wages,  fines,  and  frequent  contributions 


132  A  DIVIDEND  TO  LABOR 

from  the  company  supply  tlie  treasury.  In  1896  there 
were  11,094  members:  the  receipts  were  252,174  fr., 
the  expenditures,  234,014  fr.  From  January  1, 1887, 
to  1894  the  company  deposited  in  the  National  Re- 
tiring Fund  for  each  year  a  sum  equal  to  1 1  per  cent, 
of  the  wages  of  the  workman,  the  latter  making  an 
equal  payment ;  the  law  of  1894  increased  the  contri- 
bution for  both  parties  to  2  per  cent. ;  this  payment 
continues  until  the  workman  is  fifty-five  years  of  age. 
The  company's  whole  contribution  in  1896  for  pen- 
sions, aid  and  service  premiums  (100,000  fr.  for  an 
endowment  of  these  premiums)  was  902,767  fr.  A 
workman  entering  at  thirteen  and  retiring  at  fifty-five 
years  under  this  system,  aided  by  a  supplement  from 
the  company,  would  enjoy  a  pension  of  560  fr. :  his 
widow  would  receive  170  fr.  a  year.  In  cases  of  in- 
firmity or  serious  wounds,  he  receives  his  pension  and 
a  further  sum  which  may  reach  180  fr.  a  year :  if 
he  should  be  killed  at  his  work,  his  widow  would  be 
entitled  to  a  yearly  grant  of  180  fr.,  to  which  is  often 
added  a  bonus  of  the  same  amount :  the  parents  of 
workmen  kiUed  enjoy  the  same  advantages.  The  em- 
ployes are  also  entitled  to  pensions,  the  expense  being 
295,493  fr.  in  1896.  Before  the  introduction  of  free 
public  education,  the  company  paid  all  the  expenses 
for  instruction  of  the  younger  children  connected  with 
the  mines.  It  now  supports  one  school  for  boys  and 
two  for  girls  :  it  has  given  two  schools  and  four  kinder- 
gartens to  the  neighborhood.  Its  school-bill  for  1896 
was  nearly  26,000  fr.  Its  special  technical  school 
receives  the  best  pupils  from  the  lower  gi-ades,  under 
the  management  of  the  engineers.  The  company  has 
built  four  Roman  Catholic  churches,  and  it  pays  the 


PATRONAL  INSTITUTIONS  IN  FRANCE     133 

salaries  of  two  curates.  A  special  fire  fund  provides 
compensation  for  the  seventy  men  in  the  service,  in 
case  of  injuries  received,  and  pensions  to  widows.  A 
developed  system  of  free  medical  attendance  is  to 
be  found  at  Anzin,  costing  the  company,  in  1896, 
137,619  fr.  The  workman  receives  twenty  bushels  of 
coal  a  month  free  :  in  case  of  sickness  or  of  very  large 
families  this  amount  is  increased :  in  1896  the  coal  so 
distributed  was  valued  at  425,427  fr.  The  child  at 
its  first  communion  is  given  a  bonus  of  12  fr. :  the 
workman  does  not  pay  for  his  first  suit  of  clothing  for 
work  in  the  mines  :  the  wife  of  a  workman  on  military 
service  receives  an  allowance :  several  musical  societies 
are  subsidized :  prizes  are  offered  for  skill  in  archery, 
ball  games,  etc. :  a  hbrary  for  workmen  is  open  on 
Sundays.  When  bread  rises  above  some  3|^  cents 
a  pound,  the  company  distributes  it  at  this  price :  in 
1873  this  distribution  cost  )|26,600.  The  total  cost 
to  the  company  of  its  long  roU  of  patronal  institutions 
in  1896  was  2,211,249  fr.  :  the  sum  for  this  purpose 
in  1888  equaled  a  dividend  of  12  per  cent,  on  wages, 
or  47  per  cent,  of  the  dividend  paid  to  stockholders. 
Although  the  gross  amount  in  1896  appears  larger 
than  that  spent  at  Montceau-les-Mines  in  1892-93  by 
the  Blanzy  company,  this  is  probably  due  to  different 
methods  of  making  up  the  accoimt.  The  proportion 
of  the  welfare  dividend  to  wages  and  to  the  stock- 
holder's dividend  is  considerably  higher  at  the  Blanzy 
mines. 

Several  other  French  mining  companies  may  be  noticed 
briefly.  The  Company  of  Roche-la-Motiere-et-Firminy 
(near  St.  Etienne,  Loire)  supports  two  hospitals,  and  sup- 
plies free  medical  attendance  and  medicines  for  its  2,691 


134  A   DIVIDEND   TO  LABOR 

employees ;  they  have  their  coal  free,  and  the  education  of 
their  children  is  partly  defrayed  by  the  company,  which 
also  cares  for  orphan  children.  The  relief  fund  spent 
$24,600  in  1888,  and  the  pension  fund  $6,440 ;  the  latter 
is  supplemented  by  a  provident  fund.  The  whole  cost  of 
the  institutions  was  $44,823,  which  was  equivalent  to  $16.65 
for  each  workman,  to  7.07  per  cent,  on  the  total  of  $633,683 
paid  out  in  wages,  and  to  7J  cents  on  each  ton  of  coal 
mined. 

The  Montrambert  Company  has  similar  provisions 
in  the  way  of  funds  and  hospitals,  baths  and  schools :  a 
mutual  aid  society  and  a  band  are  subsidized.  The  expense 
for  these  institutions  was  $41,620  in  1888,  about  $19  for 
each  workman. 

The  Company  of  Bessfeges  (Gard)  assesses  its  work- 
men for  2  per  cent,  of  their  wages  for  a  sick  fund.  It 
maintains  at  its  own  expense  a  fund  of  equal  size  for  the 
wounded,  "  who  accept  literally  and  strictly  the  conditions 
for  indemnity  fixed  by  the  company."  If  an  employee  will 
regularly  deposit  in  the  National  Pension  Fund  3  per  cent. 
of  his  salary,  the  company  will  deposit  to  his  credit  2  per 
cent.  The  company  pays  gratuities  every  year  to  a  number 
of  workmen  on  the  ground  of  long  service,  punctuality, 
civility  and  good  conduct,  usually  about  one  tenth  of  the 
wages  ;  it  spent  on  schools  $39,181  in  1889.  Its  donations 
in  1888  were  $69,000,  a  sum  equal  to  $28.59  for  each 
workman. 

The  Lens  Mining  Company  (Lens,  Pas  de  Galas) 
have  built  171  small  houses  in  their  Cit^  St.  Edouard, 
which  their  workmen  rent  for  less  than  one  fourth  of  the 
ordinary  charge.  The  Mining  Company  of  Cour- 
ri^res  spends  over  28,000  fr.  and  that  of  Li6vin  more 
than  27,000  fr.  on  schools. 

Messrs.  Schneider  &  Co.,  proprietors  of  the  im- 
mense steel  works  at  Le  Creusot  (Sa6ne-et-Loire), 
are  worthy  rivals  of  the  Krupp  firm  at  Essen,  in  their 


PATRON AL  INSTITUTIONS  IN  FRANCE     135 

liberality  toward  their  12,338  employees.  They  have 
built  1,200  houses,  with  gardens  about  them,  which 
are  rented  at  very  low  rates;  the  firm  also  defrays 
the  general  expenses  of  the  cites  ouvrieres.  The  same 
method  is  pursued  at  the  Deeizes  mines  and  other 
mining  properties  of  the  firm.  In  2,391  cases,  be- 
tween 1837  and  1889,  there  were  advanced  to  work- 
men, to  enable  them  to  purchase  land  at  reduced  price, 
and  building  material,  3,292,671  fr. ;  of  this  amount 
there  were  due  January  1, 1 889,  227,203  fr.  Advances 
are  made  for  acquiring  houses  already  built,  and  for 
the  improvement  of  old  houses  and  of  grounds  and 
gardens.  In  the  neighborhood  of  Le  Creusot  some 
3,000  workmen's  famihes  thus  enjoy  comfortable 
homes  of  their  own. 

Down  to  1882  the  firm  paid  the  entire  expense  of 
five  schools  for  boys  :  since  that  year  the  city  has  sup- 
ported four  of  these  and  the  firm  the  advanced  school 
with  eight  teachers  and  300  pupils.  In  the  other 
schools  imder  patronage  of  the  firm  there  were  967 
boys  and  1,781  girls,  and  in  the  infant  schools  1,858 
little  children.  Several  churches  in  Le  Creusot  and 
the  vicinity  were  built  and  are  maintained  by  it.  The 
firm  receives  deposits  from  employees,  and  it  held  on 
January  1,  1889,  the  sum  of  $1,839,929  from  3,049 
depositors.  The  firm  paid  5  per  cent,  interest  until 
1878,  since  then  4  per  cent.,  the  maximum  deposit 
being  2,000  fr. 

A  provident  fund  existed  from  1837,  the  year  of 
the  foundation  of  the  house,  until  1872.  It  is  now  an 
aid  and  retiring  fund,  supplementing  the  contribu- 
tions to  the  National  Retiring  Fund.  The  firm  pays 
a  sum  equal  to  3  per  cent,  of  the  workman's  wages 


136  A  DIVIDEND   TO  LABOR 

and  2  per  cent,  of  the  workwoman's  to  this  last-named 
fund  for  independent  pensioners  :  the  book  is  personal 
property,  and  an  employee  leaving  the  house  takes  it 
with  him.  A  "  Bureau  of  Beneficence  "  is  aided  by 
the  firm  in  helping  persons  whose  pensions  are  insuf- 
ficient: the  annual  amoimt  has  been  over  80,000  fr.  in 
recent  years.  A  Home  for  the  Aged,  costing  340,000  fr., 
shelters  sixty-five  men  and  women ;  a  hospital  with 
110  beds  is  due  to  a  union  of  Le  Creusot  and  private 
generosity.  Medical  service  is  rendered  free  at  the 
works,  and  the  rules  are  liberal,  admitting  the  entire 
family  of  the  workman  and  former  workpeople. 

The  beneficent  institutions  of  the  steel  works  at 
Le  Creusot  demanded  for  their  support  in  1888, 
1,632,000  fr.,  or  136  fr.  for  each  workman,  who  thus 
received  the  equivalent  of  10  per  cent,  on  his  wages. 
There  was  a  famous  strike  at  Le  Creusot  in  1870 ; 
but  the  general  stability  of  the  force  is  surprising, 
even  in  Europe.  Out  of  12,338  workers  4,000  have 
served  over  20  years,  2,851  over  25  years,  and  some 
1,500  from  30  to  69  years.  In  the  same  family  one 
sometimes  sees  a  workman-father,  an  overseer-son,  and 
an  engineer-grandson.  The  statue  of  Eugene  Schnei- 
der, in  one  of  the  public  squares  of  Le  Creusot,  was 
erected  by  a  subscription  of  the  workmen. 

The  Gouin  Construction  Company  in  Paris  builds 
bridges,  railways  and  all  kinds  of  public  works :  it  employs 
some  7,000  persons.  The  present  head  of  the  firm  is  M. 
Jules  Gouin.  The  company  gives  pensions  to  the  widows 
and  orphans  of  workmen,  and  liberal  allowances  to  those 
who  have  grown  old  or  become  disabled  in  the  service  of 
the  company;  there  are  baths,  a  pharmacy,  free  medical 
attendance,  a  mutual  aid  society  (to  which  the  men  contrib- 


PATRON AL  INSTITUTIONS  IN  FRANCE     137 

ute  voluntarily,  and  which  they  administer),  together  with 
supplementary  funds  for  rendering  various  forms  of  assist- 
ance in  exceptional  difficulties.  The  peculiar  conditions  of 
this  business,  wherein  periods  of  nearly  total  stagnation 
frequently  follow  those  of  tremendous  activity,  have  pro- 
duced an  extremely  flexible  social  system.  "  We  have  few 
formulated  methods  of  relief,"  says  M.  Gouin,  "  but  the 
heartiest  personal  interest  in  our  workpeople.  They  know 
this,  and  are  absolutely  certain  of  receiving  reasonable  and 
tangible  help  in  time  of  need.  This  knowledge  and  this 
confidence  form  the  basis  of  their  content  and  their  good 
conduct." 

The  proportion  of  men  who  have  been  in  the  company's 
service  between  ten  and  forty  years  reaches  45  per  cent, 
among  the  lower,  and  50  per  cent,  among  the  higher  grades 
of  employees.  Strikes  are  unknown  among  them ;  even 
during  the  "black  periods,"  when  hundreds  of  employees 
have  of  necessity  been  turned  away,  no  disturbance  has  ever 
occurred.  At  such  times  neither  chance  nor  favoritism  has 
anything  to  do  with  one  man's  retention  and  another's  dis- 
missal. These  matters  are  regulated  according  to  a  rigid 
rule,  which  is  based  entirely  upon  the  length  of  individual 
service.  When  the  period  of  depression  is  at  an  end,  the 
same  rule  determines  the  order  in  which  the  men  shall  be 
recalled. 

M.  Gouin  has  recently  completed,  at  a  cost  of  $320,000, 
a  magnificent  addition  to  his  social  schemes,  which  is  in- 
tended to  benefit,  not  merely  his  employees  and  their  fam- 
ilies, but  the  whole  working  population  of  the  Clichy  quarter. 
This  addition  comprises  a  surgical  hospital  (with  dispensa- 
ries for  out-patients),  besides  two  blocks  of  "  habitations 
^conomiques,"  or  model  tenement-houses.  The  buildings  — 
the  hospital  and  the  tenements  —  stand  on  opposite  sides  of  a 
square  which  has  frontage  on  four  streets,  and  are  separated 
by  a  large,  beautifully  laid-out  garden.  The  hospital,  which 
is  literally  surrounded  by  gardens,  is  so  placed  as  to  have 
a  great  number  of  sunny  rooms,  and  it  fulfills  the  strictest 


138  A   DIVIDEND   TO  LABOR 

requirements  of  medical  and  surgical  science.  The  use  of  it 
is  intended  for  self-respecting  people  of  the  working  class- 
The  surgical  attendance  is  free,  but  patients  pay  for  their 
board,  —  fifty  cents  per  day  if  in  a  ward,  or  one  dollar  in 
a  private  room. 

The  two  model  tenements  are  five  stories  in  height  and 
contain  sixty-five  flats,  each  of  them  consisting  of  a  good- 
sized  vestibule,  either  one  or  two  bedrooms,  a  kitchen,  and 
a  water-closet  with  abundance  of  water,  besides  a  locked 
compartment  in  the  cellar.  There  is  not  one  dark  room  in 
either  house,  nor  a  single  window  that  looks  upon  a  court. 
Every  room  faces  either  the  street  or  the  pretty  garden  ;  the 
corridors  and  staircases  are  as  well  lighted  as  the  flats.  In 
each  kitchen  is  a  convenient  little  cooking-range  (which  takes 
up  less  space  than  a  stove),  gas  and  water,  the  latter  being 
supplied  from  an  artesian  well  280  feet  deep,  another  of 
M.  Gouin's  constructions.  The  rents  in  these  houses  range 
between  $45  and  $60  per  year,  according  to  the  position  and 
size  of  the  flats.  At  these  low  figures  —  at  least  one  third 
less  than  is  asked  for  inferior  lodgings  of  the  same  size  in 
the  neighborhood  —  this  kind  of  property  in  Paris  yields  a 
net  income  of  4  or  5  per  cent.^ 

A  brief  account  will  suffice  of  the  patronal  institutions 
of  several  other  iron  and  steel  works  in  France.  The  So- 
ciety of  the  North  and  East  builds  neat  houses,  with 
gardens,  which  it  lets  at  rents  producing  an  interest  of  3 
per  cent,  on  the  investment.  It  supports  a  school  and 
adult  classes.  It  retains  2  per  cent,  on  wages  for  an  aid 
fund,  making  up  a  yearly  deficit  of  $2,200,  a  special  aid 
fund  being  supported  from  profits.  It  insures  its  workmen 
against  accidents,  and  pays  5  per  cent,  interest  on  deposits 
by  the  workmen. 

The  Company  of  the  Iron  Works  of  Champagne 
and  the  Canal  of  St.  Dizier  at  Wassy  adds  to  the 
compulsory  2  per  cent,  contribution  from  wages  for  an  aid 

^  The  above  account  is  slightly  abridged  from  the  letter  in  the  New 
York  Evening  Post,  before  quoted  on  p.  94. 


PATRON AL  INSTITUTIONS  IN  FRANCE     139 

fund  (10  per  cent,  for  the  first  month)  a  variable  amount. 
To  the  retiring  fund  it  gives  $2,400  a  year  and  half  the 
profits  of  the  company's  stores.  The  income  of  this  fund 
helps  to  pay  educational  expenses,  and  for  gymnastics  and 
festivals,  as  well  as  for  the  usual  objects  of  such  funds. 
The  schools  provide  for  346  pupils.  An  apprentice  school 
teaches  girls  to  sew  and  make  up  garments.  In  the  second 
year  the  girl  receives  fifteen  cents  a  day,  and  in  the  third 
all  the  wages  she  can  gain.  The  whole  sum  is  put  in  a 
savings  account  payable  at  marriage  or  coming-of-age.  The 
workmen  are  assured,  as  a  body,  by  the  company  against 
accidents :  it  receives  deposits  from  them  at  six  per  cent, 
interest.  The  stores  sell  for  cash  on  checks  furnished  three 
times  a  month  by  the  company,  and  debited  on  wages.  The 
second  half  of  the  10.75  per  cent,  dividend  goes  to  the  buy- 
ers :  trading  at  these  stores  is  voluntary.  Aged  workmen 
are  appointed  to  light  work  or  sheltered  in  comfortable 
homes.  The  individual  worker  sees  his  real  compensation 
increased  by  these  various  institutions  S11.12,  the  whole 
expense  for  the  works,  being  about  $19,570  a  year. 

The  efforts  of  MM.  Les  Pils  de  Peugeot  Pr6res, 
manufacturers  of  iron,  at  Valentigny  (Doubs),  to  house 
their  force  of  operatives  find  an  unusual  obstacle  in  the 
general  refusal  of  the  workpeople  to  buy  the  cottages  or 
tenements  built  by  the  firm.  The  men  "  prefer  to  buy  land 
and  build  houses  according  to  their  own  taste."  But  the 
firm  advances  money  to  help  them.  It  gives  to  a  mutual 
aid  society  a  subsidy  equal  to  one  third  of  the  subscription 
from  the  employees,  and  supplies  the  sick  with  help  in  kind, 
to  an  amount  equal  to  the  money  aid  from  the  society.  It 
pays  pensions  after  the  usual  regulations,  half  of  the  sum 
reverting  to  the  widows  and  orphans.  It  pays  interest  at  4 
per  cent,  on  workmen's  savings  deposited  with  it,  and  in- 
sures the  entire  force  against  accidents  at  its  own  expense. 
Two  cooperative  stores  sell  to  the  workmen  and  the  public, 
but  only  the  workmen  are  eligible  as  shareholders  (there 
were  250  of  these  in  1889)  :  75  per  cent,  of  the  profits  go 


140  A  DIVIDEND   TO  LABOR 

to  the  consumers :  15  per  cent,  to  the  reserve  fund  and  the 
shareholders.  At  a  bakery  established  by  a  cooperative 
society,  bread  is  sold  at  5  per  cent,  above  cost.  The  firm 
has  built  and  maintains  four  schools  and  two  infant  schools : 
a  hospital  has  been  founded  by  M.  E.  Peugeot. 

What  Mr.  WiUoughby  calls  "  the  most  important 
step  that  has  yet  been  taken  in  the  development  of 
voluntary  insurance  "  (p.  114)  is  due  to  the  Coraite 
des  Forges  de  France,  an  organization  similar  to 
the  Iron  and  Steel  Association  in  the  United  States, 
and  including  all  the  leading  manufacturers.  The 
Caisse  /Syndicate  d^ Assurance  Mutuelle  des  Forges 
de  France  was  founded  in  1891  for  the  purpose,  in 
the  first  place,  of  cooperation  in  general  insurance 
of  workmen  in  this  industry  against  accidents.  Mem- 
bership is  optional,  but  the  hope  is  that  it  will  come 
to  include  practically  all  such  concerns.  The  total 
amount  in  wages  paid  by  each  establishment  is  taken 
as  the  general  basis  of  contribution.  The  establish- 
ments are  grouped  in  three  classes  according  to  the 
risk  incurred :  and  the  general  basis  is  qualified  by  one 
of  the  three  coefficients  of  risk  thus  obtained.  The 
maximum  is  1.80,  1.50  or  1.20  fr.  per  100  fr.  paid  in 
wages  :  "  in  practice,  this  maximum  was  required  only 
the  first  year."  A  system  of  rebates  provides  for 
returning  to  each  establishment  "  the  difference  be- 
tween the  amount  of  their  contributions  and  the 
amount  paid  to  their  employees  in  indemnities."  In 
1895  this  Caisse  des  Forges  had  46  members  and  in- 
sured 56,110  employees  :  its  receipts  (dues  and  inter- 
est) were  $178,676.45  (the  rebates  being  $14,889.83)  : 
its  expenditures  were  exactly  equal :  the  assets,  in  the 
funds  for  pensions,  unadjudicated  claims  and  reserve, 


PATRON AL  INSTITUTIONS  IN  FRANCE     141 

amounted  to  $318,960.54.  Encouraged  by  the  success 
of  this  very  soundly  organized  fund,  the  Comite  des 
Forges  established  a  similar  fund  in  1894  for  insur- 
ance against  old  age  and  invalidism.  Its  accident  fund 
finds  companions  in  the  insurance  funds  of  the  masons 
and  the  plumbers  of  Paris,  and  in  the  national  fund  of 
the  textile  manufacturers  of  France,  organized  in  1895. 

The  great  woolen  factories  at  Gateau,  Bousies,  and 
Mauvois  (Nord),  founded  by  M.  Paturle-Lupin  in 
1819,  are  now  owned  by  Seydoux  et  Cie.  The  house 
employs  2,821  men,  women  and  children  beside  800 
hand-weavers  outside  the  mills,  and  184  emploijes. 
The  total  bill  for  wages  and  salaries  is  3,050,000  fr.  a 
year  :  the  capital  is  17,000,000  fr.  :  the  workmg-day  js 
eleven  and  a  half  hours,  and  the  day's  wages  run  from 
1.50  fr.  to  5  fr.  Premiums  on  production  may  amount 
to  11  fr.  a  loom  per  quarter,  and  like  the  quarterly 
premiums  for  regularity  (12  fr.),  they  amount  to 
12,000  fr.  a  year. 

Seydoux  et  Cie  divide  25  per  cent,  of  their  profits 
among  seventy  of  the  overseers  and  the  clerical  force, 
but  the  great  body  of  the  workers  receive  the  benefit 
of  a  large  variety  of  institutions  due  to  the  kindliness 
of  the  firm.  A  savings-bank,  established  in  1866, 
pays  5  per  cent,  interest  on  deposits  below  1,000  fr. 
and  4  per  cent,  on  larger  sums.  There  are  200  small 
depositors,  depositing  an  average  of  100,000  fr.  a 
year :  the  whole  amount  held  is  nearly  3,000,000  fr., 
belonging  to  325  persons.  Retiring  pensions  were  paid 
by  the  firm  in  1890,  to  the  extent  of  31,300  fr. :  18 
employes  had  pensions  varying  from  800  to  1,200  fr., 
and  37  workers  of  both  sexes  received  from  150  to 
400  fr.     Supplementary  pensions  for  the  latter  class 


142  A  DIVIDEND  TO  LABOR 

are  paid  from  a  fund  to  those  who  have  been  forty 
years  in  the  service  of  the  house.  The  income  of 
another  fund  of  200,000  fr.,  left  by  Madame  A. 
Seydoux,  goes  to  increase  all  the  pensions  granted. 
Aid  f imds  —  supported  by  fines,  a  gift  of  the  same 
amount,  and  additional  subventions  from  the  firm  — 
give  medical  aid  and  money  help  to  all  the  workers, 
but  especially  to  widows  and  their  children.  Women 
in  confinement  receive  ten  days'  pay.  Bath-houses,  at 
ten  centimes  a  bath,  are  open  to  all.  The  firm  pays 
the  excess  of  expenses  over  receipts  (2,500  fr.)  of  a 
diet  kitchen  which  provides  soup,  vegetables  and  meat 
at  six  cents  a  meal.  It  supports  a  creche  where  thirty- 
five  to  forty  infants  are  received  for  twenty  centimes  a 
day  (the  expense  being  sixty-four)  after  they  are 
fifteen  days  old.  They  can  remain  here  until  old 
enough  to  attend  the  infant  school,  at  three  years. 
This  schools  numbers  300  children,  and  the  firm  like- 
wise maintains  a  school  for  200  girls.  The  small  city  of 
Cateau  possesses  a  hospital,  a  maternal  home,  a  home 
for  old  men,  an  infant  school  and  a  supply  of  drinking- 
water,  provided  by  the  generosity  chiefly  of  Mmes. 
Paturle-Lupin  and  C.  and  A.  Seydoux. 

These  patronal  institutions  at  Cateau  represent  a 
gift  to  each  of  the  1,746  workpeople  there  of  65.70  fr. 
a  year.  Entire  families  may  be  found  in  the  establish- 
ment, and  more  than  a  third  of  the  adult  force  counts 
at  least  fifteen  to  twenty  years  of  service.  There  has 
never  been  a  strike  at  Cateau,  and  but  one  slight  dis- 
turbance has  occurred  at  Bousies.^ 

The  Thaon  Blanchisserie  et  Teinturerie  (Vosges) 

*  See  the   Bulletin  de  la  Participation  aux  Binifices  for  1892, 
pp.  67-73. 


PATRONAL  INSTITUTIONS  IN  FRANCE     143 

is  a  much  younger  house  than  the  Seydoux.  It  was 
founded  in  1872,  six  miles  below  Epinal,  on  the  Mo- 
selle, to  take  the  place  in  the  French  market  of  sim- 
ilar establishments  in  Alsace.  Mons.  A.  Lederlin,  the 
director,  soon  began  a  cooperative  store  in  the  new 
village.  In  1892  it  did  a  business  of  144,243  fr.  on 
a  very  small  capital,  at  a  profit  of  21,415  fr. :  the 
average  dividend  is  11.82  per  cent,  on  purchases  — 
2  per  cent,  goes  to  the  provident  fund.  A  mutual 
aid  society,  assisted  by  the  company,  held  a  surplus,  at 
the  close  of  1891,  of  147,856  fr.  A  part  of  this  smn 
is  invested  in  mortgages  on  houses  built  by  workmen, 
forty-eight  of  whom  had  thus  been  aided  by  December 
31, 1892.  A  savings-bank  allows  5  per  cent,  interest : 
the  deposits  in  this  bank,  a  branch  of  the  Epinal 
Bank,  and  a  school  bank  were  over  2,000,000  fr.  in 
1892. 

The  Thaon  company  gives  5  per  cent,  of  its  profits 
to  a  retiring  fund.  Beginning  with  the  first  year  of 
profits,  1880,  the  fund  reached  375,721  fr.  by  1892. 
The  pensions  vary  from  500  to  600  fr. :  smaller 
pensions  are  provided  by  the  mutual  aid  society. 
M.  Lederlin  supplements  the  work  of  these  two  funds 
with  a  system  of  baths,  a  refectory,  a  gymnasium, 
drawing  and  manual  training  schools,  a  library  and  a 
reading-room.  A  gun  club,  a  brass  band  and  a  choral 
society  have  been  organized  since  1879.  M.  Lederlin 
has  endeavored  to  bestow  on  his  employees  "  all  the 
moral,  intellectual  and  material  resources  which  spring 
from  the  study  and  the  conscientious  and  disinterested 
application  of  the  great  problems  of  social  economy." 

The  Soci6t6  Anonyme  de  Tissus  de  Laine  des 
Vosges  at  Thillot  and  Trougemont  in  that  depart- 


144  A  DIVIDEND  TO  LABOR 

ment  gives  employment  to  727  workers,  with  an  out- 
put of  5,000,000  fr.  The  rules  of  the  Soeiete  (1870) 
reserved  15  per  cent,  of  the  profits  for  the  employees. 
Until  1889  this  went  to  support  a  fund  for  "gratifi- 
cations" (which  amounted  to  50,000  fr.  in  1890)  and 
to  create  various  provident  institutions  like  those  at 
Thaon.  In  1889  the  Soeiete  transferred  the  main- 
tenance of  these  institutions  to  "  general  expenses," 
granting  the  15  per  cent,  in  a  direct,  individual  scheme 
of  profit  sharing.  The  institutions  supported  by  the 
collective  participation  include  an  aid  fund  (now  kept 
up  by  1  per  cent,  reserve  on  wages)  :  a  retiring  and 
accident-insurance  fund,  maintained  chiefly  by  the 
Soeiete,  and  a  very  successful  cooperative  store.  A 
pension  for  unmarried  men  furnishes  lodging,  light 
and  washing  free  for  thirty  persons  :  board  is  1  fr.  10c. 
a  day.  No  spirituous  liquors  can  be  used  in  the 
house  and  only  steady  workmen  are  admitted.  The 
Soeiete  has  interested  itself  in  low-cost  houses  — - 
tenements  and  cottages  —  for  the  married  men.  It 
provides  a  school  for  apprentices,  who  are  paid  wages 
from  their  entrance.  Other  institutions  are  a  hydro- 
pathic house,  a  general  school,  a  library  and  musical 
societies. 

The  Waddington  Sons  Co.,  cotton  spinners  and  weav- 
ers, employ  some  1,250  persons  altogether  at  St.  Kemy- 
Sur-Avre  (Eure-et-Loire),  paying  out  over  1,000,000  francs 
a  year  in  wages.  To  the  mutual  aid  society,  founded 
in  1827,  the  firm  turns  over  the  fines  paid,  and  subscribes 
$300  annually:  to  the  library  founded  in  1885,  $120  a 
year.  It  has  built  164  small  houses  with  gardens,  rented 
at  a  low  rate.  The  company  supports  entirely  at  its  own 
expense  a  creche,  with  59  children  cared  for  in  1888,  at  a 
cost  for  that  year  of  $859  :  a  maternal  school,  for  92  chil- 


PATRONAL  INSTITUTIONS  IN  FRANCE     145 

dren,  at  an  expense  of  $875  :  free  schools  with  obligatory 
attendance,  and  gratuitous  text-books ;  the  payment  of 
wages  to  men  on  reserve-military  duty :  accident  insurance 
and  retiring  pensions.  In  1888  there  were  74  workmen 
on  the  retired  list  with  an  average  pension  of  $45.  The 
mutual  aid  society  gives  no  help  where  sickness  is  caused 
by  drinking  habits. 

Mons.  F.  Abrand,  manager  of  the  spinning-mill  at 
CourtivTon,  has  a  relief  fund  of  the  ordinary  kind  for 
cases  of  sickness  or  accident.  A  peculiar  institution  is  the 
encouragement  of  savings  by  offering  what  amounts  to  a 
very  high  rate  of  interest.  To  any  sum  from  sixteen  cents 
up  to  eighty  left  in  the  postal  savings-bank  monthly  by  an 
employee,  M.  Abrand  adds  25  per  cent.  No  part  of  the 
whole  deposit  can  be  drawn  before  the  end  of  five  years  if 
the  depositor  wishes  to  receive  the  extra  amount  from  the 
house.  A  new  period  will  begin  at  the  end  of  the  first  five 
years.  In  case  of  dismissal  from  employment  for  fault,  the 
25  per  cent,  increase  goes  to  the  relief  fund:  the  work- 
man must  not  fail  to  deposit  at  least  sixteen  cents  a  quarter 
to  avoid  loss.  If  a  man  deposits  eighty  cents  a  month  for 
a  year,  at  the  end  of  that  time  he  will  have,  including 
interest  and  25  per  cent,  bonus,  $12.19  for  the  $9.60  saved 
from  wages  —  an  increase  equal  to  27  per  cent,  interest. 

At  Elboeuf  (department  Seine-Infdrieure),  thirteen  miles 
from  Rouen,  MM.  Blin  et  Blin,  cloth  makers,  themselves 
insure  their  workmen  against  accidents,  after  an  unsatisfac- 
tory trial  of  insurance  through  companies.  A  relief  depart- 
ment in  the  works  gives  immediate  attention  to  an  injured 
person ;  he  is  cared  for  until  well  again  by  the  house :  his 
wages  continue :  and  if  he  is  partially  incapacitated,  he  re- 
ceives assistance  in  proportion  to  his  disability.  A  pension 
is  given  to  the  widow  of  any  workman  killed  in  the  mill. 

M.  Albert  Lung,  in  his  cotton-mills  at  Moussey  and 
La  Petite  Raon  (Vosges),  supports  schools  for  children 
and  adults ;  receives  workmen's  savings  at  five  per  cent. ; 
advances  sums  to  help  the  employee  buy  real  estate,  or  in 


146  A   DIVIDEND   TO  LABOR 

sickness,  or  to  put  an  end  to  purchasing  goods  on  credit  — 
the  advances  being  repaid  in  monthly  installments.  He  has 
built  houses  for  some  $500  each,  which  he  lets  at  $2  a 
month,  or  sells  for  $400,  payable  at  the  rate  of  $5  a  month, 
with  interest  at  5  per  cent. 

Messrs.  Saint-Fr6res,  spinners  and  weavers  of  cotton 
and  flax  at  Paris  and  Houen,  have  built  453  cottages,  at 
an  expense  of  $222,000,  which  they  rent  to  their  workmen 
at  such  a  figure  as  to  realize  scarcely  1  ^  per  cent,  on  their 
investment.  They  maintain  schools  in  their  different  fac- 
tories. An  aid  fund,  a  retiring  fund  and  an  accident-insur- 
ance fund  are  supported  by  an  assessment  of  ten  cents  a 
fortnight  on  each  of  the  male  workpeople,  and  seven  cents 
on  each  woman  and  child  :  by  a  subscription  from  the  firm 
equal  to  one  third  of  this  foregoing  sum  :  by  fines :  by  gifts, 
and  by  interest  at  four  per  cent,  paid  by  the  firm  on  the 
capital. 

M.  D.  Walter- Seitz,  a  cotton  spinner  and  weaver  at 
Granges  (Vosges),  has  built  thirty-seven  stone  houses  (two 
stories  high,  with  gardens)  for  rental  to  his  workpeople  at 
two  thirds  of  the  rental  charged  in  the  neighborhood.  He 
defrays  the  whole  expense  of  sickness  among  his  500  em- 
ployees :  he  insures  them  against  accidents  and  their  house- 
hold goods  against  fire.  He  allows  five  per  cent,  interest 
on  deposits,  and  supports  a  maternal  school  receiving  chil- 
dren up  to  six  years  of  age. 

Villeneuvette  is  the  name  of  an  interesting  industrial 
establishment  founded  by  Colbert,  Louis  Fourteenth's  famous 
minister,  in  1666.  It  is  engaged  in  making  cloths  for  the 
army,  a  business  subject  to  great  fluctuations,  being  in  some 
years  four  times  as  large  as  in  others :  the  contract  sys- 
tem is  also  a  feature  involving  much  uncertainty.  Vil- 
leneuvette itself  is  a  commune  (near  Clermont  I'Hdrault) 
inclosed  by  a  wall  with  gates,  opened  at  4.30  A.  m.  and 
closed  at  9.30  p.  m.  The  workmen  prefer  to  reside  in  the 
commune  so  far  as  possible,  in  the  seventy  dwellings  which 
are   rent-free.      They   are    supplied   with   medicines   and 


PATRON AL  INSTITUTIONS  IN  FRANCE     147 

medical  attendance  by  two  physicians  of  the  adjoining 
town  for  8  fr.  a  year.  There  is  great  stability  in  the  force  : 
four  families  have  lived  and  worked  there  for  more  than 
140  years  :  over  140  persons  have  worked  more  than  thirty 
years.  The  directors  of  Villeneuvette  take  pains  to  keep 
their  men  employed,  preferring  to  lose  a  more  or  less  con- 
siderable sum  rather  than  shut  down  the  works.  The  con- 
sequence of  this  policy  is  that  Villeneuvette,  though  possess- 
ing few  patronal  institutions,  is  a  home  of  industrial  peace  : 
A  most  important  factor  in  the  situation  is  doubtless  the 
fact  that  the  employer  lives  amongst  his  workpeople  in 
simple  style.  "  Now  as  formerly,"  writes  M.  Maistre, 
"  what  is  asked  by  the  workingman  is  not  so  much  a  high 
rate  of  wages  as  security  for  the  future.  The  best  way  to 
give  security  to  the  workingman  is  to  live  with  him." 

Janvier,  Pdre  et  Fils  et  Compagnie,  at  their  rope- 
walk,  Le  Mans  (Sarthe),  furnish  gardens  for  their  work- 
men large  enough  to  supply  vegetables  for  a  family.  The 
men  generally  live  two  or  three  miles  away,  so  that  the  firm 
established  for  them  a  restaurant  capable  of  supplying  food 
for  200  persons :  the  annual  deficit  is  from  600  to  1,800  fr. 
The  men  are  insured  by  the  firm  against  accidents,  which 
are  very  infrequent  (three  serious  ones  only  in  twenty-eight 
years).  The  relief  fund,  founded  by  the  house  and  main- 
tained by  a  donation  and  fines,  provides  medical  care  and 
medicines :  wounded  workmen  receive  full  wages,  and  the 
sick  the  usual  aid.  The  firm  also  divides  profits  with  its 
force. 

In  the  same  town  A.  Chepp6e,  founder  and  builder, 
pays  pensions  to  members  of  the  Mutual  Benevolent  Society, 
which  provides  for  cases  of  sickness  and  accident. 

The  Glass  "Works  at  Baccarat  (Meurthe-et-Mo- 
selle),  like  Villeneuvette,  furnish  free  lodgings  for 
the  glass-workers  proper  in  houses  built  by  the  com- 
pany, with  small  gardens  about  them :  224  house- 
holds, consisting  of  897  persons,  were  thus  housed  in 


148  A  DIVIDEND  TO  LABOR 

1888.  The  dwellings  represent  an  investment  of 
800,000  fr.  in  addition  to  the  cost  of  maintenance. 
The  company  does  nothing  more  in  this  line  for  the 
rest  of  its  2,000  employees.  Its  provision  for  school- 
ing is  elaborate,  comprising  an  infant  school  (with 
100  children  from  three  to  six  years  old)  ;  a  primary 
school  for  130  girls,  from  which  they  can  enter  an 
industrial  school  where  they  learn  sewing  and  house- 
keeping (thirty-five  in  1888)  ;  a  school  for  apprentices 
between  twelve  and  fifteen  years  old,  kept  from  five 
to  seven  o'clock  p.  m.  ;  a  more  advanced  school  for  the 
apprentice  cutters,  engravers,  carvers  and  draftsmen, 
giving  a  year's  instruction,  followed  by  the  school  of 
design,  obligatory  on  the  same  persons,  who  work  here 
from  4.30  p.  M.  to  6  p.  m.  The  company  supports 
the  vicar  of  the  parish,  who  conducts  service  in  the 
chapel  of  the  manufactory,  a  philharmonic  society,  and 
free  medical  service  from  a  physician  living  at  the 
works. 

There  are  three  mutual  aid  societies  for  the  glass- 
makers,  the  cutters  and  the  other  workmen,  adminis- 
tered by  councils  composed  of  a  majority  of  oper- 
atives elected  by  the  force:  215  persons  are  aided 
each  month  on  the  average.  The  three  societies  paid- 
out,  in  1888,  27,000  fr.,  and  received  28,000  fr.,  — 
17,000  fr.  from  the  workmen  represented  assessments 
varying  from  1  to  2  per  cent,  on  wages,  and  11,000  fr. 
from  the  company  was  a  2  per  cent,  contribution  on 
the  total  wages :  interest  is  paid  by  it  at  5  per  cent. 
The  company  provides  for  cases  of  accidents,  which 
rarely  occur,  —  not  one  death  on  the  average  in  four 
years.  Religious  services  for  the  dead  are  also  pro- 
vided for. 


PATRON AL  INSTITUTIONS  IN  FRANCE     149 

The  company  supports,  entirely  at  its  own  expense, 
a  retiring  fund,  which  in  1888  gave  to  109  men  and 

19  women  pensioners  $9,199  :  the  woman's  pension  is 

20  fr.  a  month ;  the  man's  varies,  but  may  not  be  less 
than  25  fr.  a  month.  Allowances  to  women  in  child- 
bed (they  can  return  to  work  only  six  weeks  after 
confinement)  ;  a  creche ;  a  system  of  free  baths ;  a 
special  fund  for  the  fire  company  of  70  employees 
(giving  an  injured  workman  his  full  wages,  or  the 
widow,  in  case  of  death,  a  pension  of  300  fr.)  ;  a 
savings-bank,  holding  accounts,  in  1888,  with  1,308 
workpeople,  who  had  760,000  fr.  on  deposit,  are  other 
features  of  the  Baccarat  establishment.  It  is  esti- 
mated that  the  force  saves  10  per  cent,  of  its  wages. 
The  patronal  institutions  represent  5  per  cent,  on  the 
same  sum,  or  1.75  per  cent,  on  the  capital  of  6,000,- 
000  fr.  The  stability  of  the  force  is  great :  one  half 
have  served  over  nine  years,  one  quarter  more  than 
twenty  years,  one  tenth  more  than  tliirty  years. 
There  has  never  been  a  strike  or  an  attempt  at  one. 
"  The  working  population  is  a  true  family.  .  .  .  the 
attachment  of  employer  and  employed  has  been  re- 
peatedly manifested." 

The  glass  works  operated  at  Folembray  (Aisne) 
by  the  Society  de  Poilly,  Fitz-James  et  Brigode, 
lodges  its  workpeople  gratuitously,  like  the  Baccarat 
works.  Its  other  benefactions  are  more  informal  than 
usual,  but  comprehensive.  They  include  kind  treat- 
ment of  the  children  (schoohng,  lodging  at  the  works, 
a  free  ration  of  meat,  winter  and  summer  suits,  etc.), 
aid  to  sick  workmen  (the  company  also  paying  from 
one  third  to  one  half  of  the  physician's  fee),  reduction 
of   military  service  so  far  as  is  legal,  money  loans 


150  A   DIVIDEND   TO  LABOR 

without  interest  and  various  other  minor  philanthro- 
pies. 

The  cite  which  one  sees  at  the  Chocolat  Menier 
"Works  at  Noisiel  (Seine-et-Marne)  has  an  attractive 
appearance.  The  brick  houses  are  solidly  built,  with 
iron  flooring  and  tile  roofs ;  there  are  large  gardens  : 
on  the  broad,  well-shaded  street  a  house  on  one  side 
faces  a  garden  on  the  other,  thus  giving  the  best  cir- 
culation of  air  possible.  There  are  295  of  these  tene- 
ments (mostly  two  to  a  house,  costing  some  10,000  fr.), 
sheltering  1,400  persons  out  of  a  force  of  2,100.  The 
rent,  about  that  charged  for  inferior  accommodations 
elsewhere  in  the  vicinity,  represents  three  per  cent, 
gross  on  the  investment  of  1,800,000  fr.,  and  from 
one  tenth  to  one  twelfth  of  the  earnings  of  the  heads 
of  the  houses.  The  Menier  brothers  are  content  with 
a  small  return ;  for  they  pay  taxes,  repairs,  and  other 
expenses  (such  as  light  for  the  streets  and  water  for 
the  houses)  equal  to  one  half  of  the  rent  charged ;  but 
they  do  not  sell  any  of  their  houses,  in  order  to  keep 
out  undesirable  persons.  They  reduce  rents  according 
to  a  fixed  scale  after  ten  years'  occupancy  (the  oldest 
workmen  thus  pay  no  rent),  and  the  stability  of  the 
force  is  high. 

Around  a  central  square  are  situated  the  various 
institutions  maintained  by  the  firm.  A  general  store 
supplies  all  the  necessaries  of  life  —  provisions,  dry 
goods,  firewood,  etc.  —  at  cost,  the  firm  baking  bread, 
and  furnishing  meat  from  cattle  raised  on  its  farms : 
the  store's  sales  amount  to  400,000  fr.  a  year.  In  large 
refectories  employees  from  outside  the  cite  can  warm 
the  food  they  bring  with  them.  Restaurants  and 
"  canteens  "  supply  board  and  lodging  at  low  prices 


PATRONAL  INSTITUTIONS  IN  FRANCE     151 

fixed  by  the  firm.  Bath-houses  and  laundries  meet  the 
needs  of  the  population  for  cleanliness.  A  physician 
is  attached  to  the  works,  whose  services  are  free,  as 
well  as  necessary  medicines.  A  sick  man  receives 
forty  cents  a  day  aid,  a  sick  woman  half  as  much :  aid 
is  given  to  women  in  confinement,  and  to  infirm  old 
men. 

The  schools  have  every  facility,  including  large  sep- 
arate playgrounds,  paved  with  wood :  books  and  other 
material  are  free.  A  concert  hall,  meeting-rooms,  a 
club-room,  a  library  and  a  hospital  also  face  the  cen- 
tral square.  "  The  inhabitants  of  Noisiel  attend  very 
regularly  the  lecture-room,  the  library,  which  contains 
1,200  select  volumes,  and  the  concerts  given  on  Sun- 
days and  holidays  by  the  band  of  the  works."  The 
firm  pays  six  per  cent,  interest  on  deposits  from  the 
workmen:  the  total  amount  in  1888  was  nearly  2,000,- 
000  fr.  "  The  philanthropy  of  the  proprietor,"  says 
Dr.  Gould,  "has  carried  him  into  these  various  enter- 
prises, but  the  results  which  have  been  reached,  he 
believes,  justify  the  economic  expenditure  which  they 
have  necessitated." 

The  French  State  has  a  monopoly  of  the  manufacture 
of  leaf  tobacco  into  smoking  and  chewing  tobacco,  snufP, 
cigars  and  cigarettes.  In  the  State  factories  the  entire 
force,  in  1875,  amounted  to  22,974  persons,  of  whom  women 
formed  nine  tenths.  They,  as  well  as  the  men  employed, 
are  very  stable  workers :  the  average  length  of  service  is 
twelve  years.  From  1861  to  1882  the  administration  of 
the  factories  paid  into  the  National  Retiring  Fund  four  per 
cent,  of  the  wages  of  the  employee.^     Since  1882  this  contri- 

^  The  State  uses  this  bank  to  insure  many  other  employees,  in 
forests,  on  roads,  on  telegraph  lines,  and  other  than  tobacco  fac- 
tories. Payments  in  1893  for  all  such  employees  amounted  to 
$475,534  (Willoughby,  p.  127). 


152  A  DIVIDEND  TO  LABOR 

bution  has  been  made  at  the  expense  of  the  State.  Between 
1861  and  1889  the  whole  payment  was  13,000,000  fr. :  the 
average  amount  on  a  book  was  460  fr.  in  1889.  Mutual 
aid  societies  have  been  founded  in  various  factories  :  some 
of  these  have  baths  and  libraries  :  two  thirds  of  the  expense 
of  creches  are  paid  by  them. 

The  crockeryware  establishment  of  Hippolyte  Boulan- 
ger  &  Co.,  at  Choisy-le-Roi,  employs  956  persons  —  men, 
women  and  children.  For  the  latter  it  provides  education 
—  an  infant  school,  separate  schools  for  boys  from  three  to 
six  years  old,  and  those  working  in  the  factory,  and  a 
boarding-school  for  fifty  apprentices,  orphan  children  of 
former  employees :  and  a  school  for  girls  from  three  to 
thirteen  years.  A  Scholar's  Savings  Bank  receives  not 
more  than  100  fr.  from  each  depositor,  and  pays  6  per 
cent,  interest.  Another  savings-bank  grants  5  per  cent. 
on  deposits  from  employees  up  to  2,000  fr.  A  "  Family 
Council,"  composed  of  leading  employees,  delegates  of  the 
two  mutual  aid  societies,  and  of  the  firm,  settle  all  questions 
of  gifts,  aid  and  pensions.  The  latter  are  granted  from  the 
income  of  a  donation  of  60,000  fr.  from  M.  Boulanger,  and 
contributions  from  the  aid  societies  and  the  firm :  the 
house  insures  against  accidents. 

The  publishing  house  of  Armand  Colin  &  Co.,  of 
Paris,  offers  premiums  to  young  employees  who  pass  ex- 
aminations in  evening  schools.  It  supplies  the  aid  of  a 
physician  when  needed :  wages  are  continued  during  illness. 
Besides  annual  presents,  it  gives  a  bonus,  usually  of  100 
fr.,  to  valued  employees  when  a  marriage,  a  birth  or  a  death 
takes  place  in  their  families.  The  house  deducts  5  per  cent, 
from  wages  to  place  in  the  National  Retiring  Fund,  adding 
itself  50  per  cent,  of  this  sum  for  persons  employed  less 
than  eight  years,  and  the  same  amount  as  the  assessment 
for  the  employees  of  more  than  eight  years'  standing.  A 
pension  is  thus  secured  amounting  to  600  to  1,200  fr. 
The  house  receives  deposits  up  to  500  fr.,  and  pays  6  per 
cent,  interest. 


PATRONAL  INSTITUTIONS  IN  FRANCE     153 

That  great  printing  establishment,  the  Imprimerie 
Chaix  of  Paris,  has  a  model  system  of  instruction  for  its 
apprentices.  As  the  house  is  a  noted  instance  of  profit  shar- 
ing, it  has  been  fully  described  by  Mr.  Sedley  Taylor  in  his 
"  Profit-Sharing  "  (pp.  50-61)  and  in  my  own  volume  on 
this  subject  (pp.  143—154).  A  detailed  account  of  the 
technical  schools  is  given  in  the  "  Notice  sur  I'Ecole  pro- 
fessionelle  de  jeunes  Typographes  de  la  Maison  A.  Chaix  et 
Cie,"  printed  by  the  firm  in  1878.  A  mutual  aid  society, 
giving  liberal  help,  and  a  voluntary  pension  fund  are  sup- 
ported by  the  employees. 

A  notable  institution  of  the  Lock  Works,  at  Neuilly 
(Seine-et-Oise),  is  a  workshop  aid  fund,  which  does  the 
usual  business  of  such  a  society  —  rendering  accident  and 
sick  aid,  and  paying  pensions  to  retired  members  or  their 
families  on  this  basis  :  The  house  pays  in  a  sum  equal  to 
2\  per  cent,  on  the  whole  amount  of  wages :  1  per  cent,  is 
retained  from  wages  :  gifts  are  made  and  interest  at  5  per 
cent,  is  paid  by  the  house  on  the  capital. 

Pleyel,  "Wolff  &  Co.,  pianoforte  manufacturers,  at 
Paris,  have  a  workshop  school  in  their  factory  which  re- 
ceives boys  from  five  to  eight,  and  girls  from  five  to  twelve 
years  of  age.  The  firm  doubles  the  savings  of  apprentices  : 
receives  deposits  from  workmen  up  to  2,000  fr.,  at  5  per  cent, 
interest :  pays  pensions  of  365  fr.  a  year  to  workmen  sixty 
years  old,  who  have  worked  thirty  years  :  contributes  gener- 
ously to  the  mutual  aid  society :  makes  advances  to  work- 
men to  be  repaid  in  small  weekly  installments :  supports  a 
small  library,  and  pays  the  expenses  of  an  archery  company 
and  a  band.  In  twenty  years  the  firm  expended  730,000  f  r. 
for  all  these  philanthropic  purposes. 

Solvay  et  Cie,  manufacturers  of  soda  and  chemical 
products,  at  Varangeville-Dombasle  (Meurthe-et- 
Moselle),  have  built  for  their  force  389  four-room 
dwellings  since  1878,  housing  2,122  persons.  Em- 
ployes and  foremen  pay  no  rent ;  the  workman  pays 


154  A   DIVIDEND   TO  LABOR 

12  fr.  per  month,  only  half  the  price  near  by  for  the 
same  kind  of  accommodation.  An  abatement  plan 
begins  with  workmen  who  have  served  seven  years 
and  have  two  children  (or  one  year,  and  have  six 
children)  :  these  are  entitled  to  25  per  cent,  reduc- 
tion. Whenever  a  child  goes  to  work  the  number  of 
the  family  is  held  to  have  been  diminished  by  two. 
Employees  who  have  served  ten  years  and  have  six 
children,  or  twenty-eight  years  and  have  two  children, 
get  their  houses  for  nothing.  Under  this  plan  the 
tenant  pays  rent  regularly:  but,  at  the  end  of  the 
year,  one  half  of  the  sum  abated  is  returned  to  him  : 
the  other  half,  deposited  to  his  account  in  a  savings- 
bank,  must  remain  there  five  years  at  5  per  cent.  In 
1889  houses  costing  440,000  fr.  were  thus  rent-free. 
The  gross  rental  is  less  than  2  per  cent,  on  the  capital 
invested.  Workmen  may  buy  these  rented  houses,  or 
borrow  of  the  company  at  2  per  cent,  to  build  them- 
selves :  fifty-seven  workmen  had  taken  this  latter 
course  by  December  31,  1898,  and  the  sums  loaned 
amounted  to  143,642  fr.  The  company  pays  deposit- 
ors 4  or  5  per  cent,  according  to  the  amount :  grants 
medical  service  free,  and  medicines  also  to  the  work- 
men over  two  years  in  service,  with  reductions  to 
those  who  have  served  a  shorter  time,  and  to  the 
families  of  all  workmen ;  it  grants  sick  aid,  accident 
insurance  and  pensions.  For  the  latter  purpose,  it 
contributes  in  any  year  when  capital  has  received  10 
per  cent,  a  sum  which  equals  10  per  cent,  of  the 
wages  of  employes  or  foremen  who  have  served  six 
full  years,  and  so  on  up  to  20  per  cent,  for  those  who 
have  served  twenty-one  years  and  over.  The  ordinary 
workman  must  subscribe  1^  per  cent,  of  his  wages  to 


PATRON  A  L  INSTITUTIONS  IN  FRANCE     155 

the  National  Retiring  Fund :  the  company  adds  twice 
as  much  and  pays  to  the  account  of  every  workman 
employed  more  than  ten  years  1  fr.  for  each  of  these 
years:  in  1898, 1,544  workmen  subscribed  213,541  fr. 
and  the  company  paid  487,150  fr.  Other  institutions 
provided  by  this  philanthropic  company  are  baths 
(plain  and  mineral),  a  hospital  with  a  visiting  nurse, 
indemnity  during  temporary  military  service,  garden 
plots  at  low  rent,  and  scholarships  for  especially  capa- 
ble children  of  workmen,  in  the  industrial  school  at 
Nancy. 

The  Lafarge  Lime-Kilns  at  Viviers  (Ardfeche)  owns 
workmen's  houses,  which,  being  much  sought  after,  for 
cheapness  and  comfort,  are  let  only  to  families  with  three 
or  more  children.  The  company  supports  two  primary 
schools,  that  for  girls  being  supplemented  by  a  workroom 
where  they  learn  housework.  A  "  Youth's  Circle  "  pre- 
pares the  most  capable  boys  for  foremen's  situations  and 
provides  amusements  also.  A  lecture  hall  and  a  gymna- 
sium stand  in  the  central  circle  of  the  village.  To  the  com- 
pany are  also  due  a  hospital  and  a  church,  the  curate  being 
supported  by  it.  The  unmarried  men  are  lodged  and 
boarded  for  35  fr.  a  month  in  the  company's  house  for  200 
persons.  The  company  pays  4^  per  cent,  interest  on  work- 
men's deposits ;  contributes  to  the  aid  fund  one  fifth  as 
much  as  the  1^  per  cent,  on  wages  retained  for  the  fund ; 
doubles  the  contribution  of  this  fund  for  insurance  against 
accident  by  a  collective  premium  ;  and  pays  pensions  to  old 
workmen,  of  whom  there  were  19  on  January  1,  1889,  re- 
ceiving 8,545  fr.  annually.  The  company  sets  aside  for 
these  various  institutions  five  centimes  per  ton  of  lime  pro- 
duced, before  profits  are  ascertained.  The  aid  fund  has 
established  a  bakery  and  a  grocery. 

Five  houses  may  be  next  named  together  in  one  paragraph. 
P.  Hubin,  Harfieur  (Seine-Inf^rieure)  aids  a  mutual  be- 


156  A   DIVIDEND   TO  LABOR 

nevolent  society,  supports  a  primary  and  an  infant  school, 
and  builds  two  kinds  of  houses  for  workmen  which  are 
much  in  request.  H.  Ducher,  Paris,  aids  a  provident  and 
savings-bank,  which  is  the  foundation  of  a  special  provident 
fund.  In  the  seven  years  ending  with  1889  M.  Ducher 
otherwise  assisted  his  force  to  the  amount  of  130,000  fr. 
Sautter,  Lemonnier  et  Cie  of  Paris,  a  profit-sharing 
house,  give  various  facilities  to  the  two  savings  groups 
formed  by  the  workmen,  and  aid  a  provident  fund,  likewise 
administered  by  the  men  themselves.  F.  Pinet,  manufac- 
turer of  boots  and  shoes,  Paris,  pays  to  a  retiring  fund  a 
sum  equal  to  five  per  cent,  of  the  wages  of  his  employees, 
if  they  are  members  of  a  mutual  aid  society.  P.  Benoist 
et  L.  Berth,iot,  opticians,  Paris,  have  a  mutual  aid  soci- 
ety, membership  in  which  is  conditioned  on  belonging  to  a 
local  aid  society :  the  firm  contributes  as  much  as  the  em- 
ployees. 

M.  Fanier,  a  large  shoe  manufacturer  of  Lillers  (Pas- 
de-Calais),  has  built  160  houses  for  his  workpeople,  so  rented 
as  to  yield  4  per  cent,  interest  on  the  cost :  the  tenant  may 
become  owner  of  his  house  by  paying  2.75  fr.  a  week  for 
520  weeks.  M.  Fanier  has  two  free  bath-rooms  in  his  fac- 
tory, ready  for  use  at  all  times,  and  two  schools.  To  induce 
workmen  to  join  the  Mutual  Benevolent  Society  of  Lillers, 
founded  by  M.  Fanier,  Sr.,  in  1861,  a  workman's  cottage  is 
given  every  year  (two  in  1887)  to  the  society,  to  be  drawn 
by  lot. 

M.  Mathieu  Dollfus  is  the  owner  of  Ch8,teau-Mon- 
trose  (Saint  Estfephe,  M6doc),  an  estate  producing  from 
100  to  200  casks  of  wine.  Each  household  of  the  employees 
has  a  cottage  rent-free,  with  its  garden ;  fuel,  wine,  med- 
ical care  and  medicines  are  also  free,  as  well  as  schooling 
for  the  children.  A  share  in  the  profits  adds  about  ten  per 
cent,  to  wages,  and  M.  Dollfus  pays  a  premium  of  two 
francs  on  each  cask  of  wine. 

The  Parisian  Gas  Company  assesses  one  per  cent, 
on  the  wages  of  its  force  for  a  provident  fund,  and  adds 


PATRONAL  INSTITUTIONS  IN  FRANCE     157 

an  equal  amount.  It  makes  an  annual  contribution  of 
85,500  f r.  to  a  pension  fund,  which  is  increased  by  2,500  fr. 
interest  on  a  legacy  from  a  former  managing  director,  and 
by  donations. 

The  General  Omnibus  Company  of  Paris  supports 
a  pension  fund  by  retaining  one  franc  a  fortnight  from  the 
employee  under  forty  years  of  age  at  entrance  on  its  ser- 
vice, and  by  an  annual  contribution  in  favor  of  those  whose 
pay  is  less  than  1,800  f r.  a  year :  this  contribution  is  12  fr. 
after  their  first  year  and  24.5  fr.  after  the  third  year.  Be- 
tween 1855,  the  year  of  the  foundation  of  the  company,  and 
1888,  it  thus  contributed  681,180  fr.  "  It  has  beside  ex- 
pended 1,089,720  fr.  for  assistance  granted  to  various  insti- 
tutions." The  accident-insurance  fund  is  supported  by 
monthly  payments  from  each  officer  and  employee,  and  by 
fines.  It  has  a  considerable  deficit  each  year,  paid  by  the 
company  (4,593,380  fr.  since  1855)  :  to  this  contribution 
are  to  be  added  the  fees  of  the  twelve  physicians  employed 
(473,110  fr.  from  the  beginning).  Burial  expenses  are  al- 
ways paid  by  the  company  (109,685  fr.  in  the  same  time). 
Indemnity  for  employees  on  military  service  amounted  to 
147,560  fr. :  the  quarterly  premium  to  drivers  having  the 
fewest  accidents  to  323,615  fr.,  and  premiums  to  the  most 
deserving  employees  to  298,785  fr.  Restaurants  supply  food 
at  low  prices  in  all  the  important  stations :  a  general  store 
sells  provisions  and  groceries  to  the  force. 

The  General  Hackmen's  Company  of  Paris  con- 
tributes to  the  Mutual  Benevolent  Society  of  the  employees 
one  tenth  of  the  fees  paid  by  them  —  a  sum  amounting  to 
223,575  fr.  in  the  period  1867-1889. 

The  Ocean  Mail  Company  (capital  60,000,000  fr.,  with 
a  fleet  of  61  steamships  and  a  force  of  11,847  persons) 
founded  in  1888  with  a  gift  of  100,000  f r.  a  provident  fund 
for  its  clerks,  to  be  supported  by  an  allowance  of  1  per 
cent,  upon  the  annual  dividend,  and  a  5  per  cent,  assessment 
on  salaries ;  the  claims  of  the  clerks  vary  according  to  the 
number  of  periods  of  six  years  which  they  have  served. 


158  A  DIVIDEND  TO  LABOR 

January  1,  1899,  there  were  1,055  members :  the  receipts 
had  been  2,330,267  fr.  and  the  disbursements  839,740  fr. 
The  aid  fund  of  the  workshops  at  La  Ciotat  (Bouches-du- 
Rhone)  is  managed  by  17  members,  of  whom  13  are 
elected :  and  it  has  3,466  members.  This  fund  receives 
assessments  varying  from  10  to  70  centimes  a  week ;  3  per 
cent,  on  the  profits  of  contract  work ;  a  gift  of  6,000  f r. 
from  the  company  ;  6,500  to  7,000  fr.  as  gratuities,  equal  to 
a  half  day's  pay,  on  each  ship-launching,  and  other  gifts. 
The  company  encourages  its  workmen  to  secure  pensions 
by  adding  30  per  cent,  to  their  deposits  in  a  retiring  fund. 
It  builds  houses  which  are  let  at  a  rental  of  some  3  per 
cent. 

The  Compagnie  G6nerale  Transatlantique  divides 
profits  with  its  employees  mainly  by  a  system  of  premiums 
which  increases  wages  and  salaries  about  fifteen  per  cent,  on 
the  average.  To  meet  the  many  needs  of  its  dangerous 
business,  it  has  established  two  separate  relief  funds.  No. 
I.  is  for  the  force  in  harbors :  they  pay  in  one  per  cent,  of 
their  income :  this  amount  is  increased  by  collections  and 
concerts  on  board.  This  fund  (200,000  fr.  in  1889)  dis- 
tributes some  60,000  fr.  a  year  to  twenty  per  cent,  of  the 
whole  force,  under  necessarily  strict  rules  of  division.  Fund 
No.  XL  is  for  the  whole  body  of  employees  on  sea  and  on 
shore :  it  is  administered  by  the  council  of  the  company  :  its 
resources  are  increased  by  contributions  from  visitors  on 
board  the  packets  in  harbor,  by  profits  from  the  sale  of 
tobacco  and  cigars  to  passengers,  and  by  fines.  In  1887 
the  capital  was  55,000  f r.  and  it  distributed  40,000  fr.  to 
135  persops.  Clerks  can  buy  food,  wine,  fuel  and  clothing 
at  wholesale  rates,  through  the  company :  a  restaurant  at 
the  central  office  gives  them  a  breakfast  below  cost:  the 
same  class  of  employees  receive  medical  aid  free. 

The  Marseilles  Dock  and  Warehouse  Company 
supports  a  system  of  pensions  for  its  clerks  and  agents. 
They  pay  in  four  per  cent,  of  their  salaries ;  the  company 
adds  an  equal  sum,  and  more  in  case  of  need.    On  the  20th 


PATRONAL  INSTITUTIONS  IN  FRANCE     159 

of  June,  1887,  there  were   twenty-eight  such  pensioners, 
receiving  18,440  fr. 

The  Suez  Canal  Company  divides  two  per  cent,  of  its 
net  profits  among  its  force,  a  part  going  to  estabb'sh  pensions : 
a  pensioner  having  four  persons  dependent  on  him  receives 
fifty  per  cent,  more  than  an  unmarried  man.  The  company 
has  a  complete  medical  service,  a  hospital,  and  a  villa  for 
convalescents.  On  his  marriage,  the  employee  receives  a 
grant  equal  to  one  or  two  months'  pay. 

According  to  a  report  of  the  French  Labor  Depart- 
ment, out  of  2,673,314  workpeople  employed  in  1896, 
in  296,797  establishments  subject  to  factory  inspec- 
tion, 115,896,  in  229  establishments  (4.35  per  cent.), 
enjoyed  the  benefits  of  pension  schemes  "  introduced 
and  worked  under  conditions  fixed  by  the  employer." 
Deducting  17,340  operatives  employed  in  the  govern- 
ment tobacco  and  match  manufactories  (and  provided 
for  by  the  National  Superannuation  Fimd),  these 
figures  would  be  98,656  workpeople  out  of  2,656,074 
(3.71  per  cent.).  All  miners  (about  166,000)  and 
seamen  (about  120,000)  are  legally  bound  to  belong 
to  a  fund  making  provision  for  old  age.  In  trans- 
portation industries  (railways,  tramways,  omnibuses), 
some  196,000  employees  are  the  subject  of  pension 
funds  voluntarily  introduced  by  employers.  Under 
the  War  Ofiice,  in  the  manufacturing  departments, 
some  20,000  operatives  are  insured,  and  some  42,000 
roadmenders  and  similar  workmen  in  other  State  ad- 
ministrations. Altogether,  in  France,  some  660,000 
wage-earners  out  of  some  3,900,000  in  the  employ- 
ments named  above  (17  per  cent,  at  the  outside) 
receive  the  benefit  of  pension  schemes  due  to  private 
initiative  or  to  State  intervention.     Very  many,  if  not 


160  A  DIVIDEND  TO  LABOR 

all,  of  the  120  or  more  profit-sharing  concerns  in 
France  have  a  variety  of  patronal  institutions.  Only 
a  few  of  these  have  been  mentioned,  for  special  rea- 
sons, in  this  chapter,  which  is  shorter  than  that  on 
Germany  mainly  because  the  latter  country  was  con- 
sidered first. 


CHAPTER  VI 

PATRONAGE    IN  HOLLAND    AND   BELGIUM 

Leaving  France  with  its  abundance  of  patron  al 
institutions,  especially  in  the  line  of  voluntary  insur- 
ance of  the  workman  by  his  employer  against  sick- 
ness, accident  and  old  age,  one  finds  in  Belgium  and 
Holland  some  striking  instances  of  the  same  methods. 
From  several  points  of  view  the  most  interesting 
examples  in  these  two  countries  are  the  Netherlands 
Yeast  and  Spirit  Manufactory  at  Delft  in  Holland, 
and  the  colheries  of  La  Vieille  Montagne  and 
Mariemont  and.  Basooup  in  Belgium. 

Mr.  J.  C.  Van  Marken  founded  what  is  now 
claimed  to  be  the  largest  yeast  factory  in  the  world  in 
1870 ;  after  twenty-six  years  of  remarkable  pro- 
sperity, the  number  of  workers  (at  DeKt,  Delfthaven 
and  Bruges  in  Belgium)  was  670 :  the  works  occupy 
ten  acres  of  ground,  and  the  wages  paid  equaled 
X33,000 :  the  production  of  yeast  had  increased  fifty 
fold  between  1871  and  1896.  The  Netherlands  Oil 
Works  (150  employees),  located  near  by,  are  con- 
nected with  the  yeast  factory,  in  the  directorship 
and  in  the  employers'  institutions  we  have  to  describe. 
The  Delft  Glue  and  Gelatine  Works,  on  the  other 
side  of  DeKt,  are  under  the  same  direction  as  the 
yeast  factory  —  Mr.  Van  Marken  and  his  nephew, 
Mr.  Waller.     Profit  sharing  has  been  for  a  number  of 


162  A   DIVIDEND   TO  LABOR 

years  practiced  by  these  three  concerns  with  success. 
The  Van  Marken  Printing  Company  is  a  notable 
instance  of  veritable  copartnership  in  which  the  250 
shares  are  now  being  steadily  transferred  from  the 
founders  to  the  workmen,  175  having  already  been 
passed  over.  A  Cooperative  Photographic  Studio  is  a 
recent  creation. 

The  combinations  thus  far  named  are  productive 
enterprises,  conducted  on  a  basis  of  profit  sharing  or 
copartnership.  The  "  Common  Property  Society  " 
was  established  in  1883  to  procure  for  the  whole  body 
of  employees  other  benefits  of  cooperation  in  general 
supplies  and  houses  :  the  sub-title  calls  it  the  "  Society 
for  Meeting  the  Elementary  Needs  of  Life."  It  is 
located  in  Agneta  Park,  a  fine  tract  of  land,  ten  acres 
in  extent,  near  Delft  and  the  yeast  factory.  It  was 
laid  out  in  the  English  style  by  a  prominent  landscape 
gardener.  In  this  "  Dutch  Paradise,"  as  it  has  aptly 
been  called,  Mr.  and  Mrs.  Van  Marken  have  their 
residence,  and  the  social  life  of  the  whole  industrial 
establishment  centres  here.  The  Common  Property 
Society  bought  a  part  of  the  park  for  building  work- 
men's cottages  of  a  convenient  and  pleasing  style. 
The  plan  for  disposing  of  the  houses  is  novel.  The 
capital  of  the  cooperative  society  is  160,000  gulden, 
or  $64,320 ;  of  this  Mr.  Van  Marken  subscribed  one 
fifth,  and  the  other  four  fifths  "  was  borrowed  from 
his  friends  at  4|  per  cent,  interest  upon  a  mortgage 
on  the  property."  There  are  now  ninety  cottages. 
"  At  first  Mr.  Van  Marken  was  the  only  stockholder 
.  .  .  but  as  the  houses  were  rented  at  a  figure  equal 
to  7|^  per  cent,  of  their  total  cost,  and  as  this  amount 
was  greater  than  interest,  taxes,  management,  contri- 


PATRONAGE  IN  HOLLAND  AND  BELGIUM     163 

bution  to  reserve  funds  and  other  expenses,  the  sur- 
plus was  credited  to  the  tenants,  who  in  this  way  be- 
came shareholders  of  the  company.  Before  obtaining 
the  full  ownership  of  shares  of  stock,  they  received 
credit  for  3  per  cent,  interest  on  the  money  so  saved. 
In  the  course  of  time  the  tenants  will  in  this  way 
come  into  possession  of  four  fifths  of  all  the  shares  of 
stock."  1 

The  society  has  built  a  large  grocery  and  provision 
store,  and  a  smaller  drapery  store.  The  profits  of  the 
stores  and  the  cottages  are  divided  annually  among 
the  tenants  and  the  buyers  according  to  the  rent  and 
the  purchases.  This  bonus  is  entered  on  the  society's 
books,  and  the  cash  goes  toward  paying  off  the  mort- 
gagees and  the  original  shareholders.  When  a  tenant's 
or  a  buyer's  accoimt  is  100  florins  (X8  6s.  8c?.),  a 
share  is  given  to  him.  After  the  mortgage  is  paid  off 
the  tenants  and  the  consumers  will  be  the  chief  owners. 
The  paying  off  of  the  oldest  shares  must  be  continued, 
insuring  ownership  to  the  actual  tenants  and  con- 
sumers. "  The  results  of  this  company,"  says  Mr. 
Tjeenk  Willmk,  in  the  Cooperative  Productive  Federa- 
tion "  Year  Book  "  for  1898,  "  have  not  been  so  satis- 
factory as  might  have  been  expected.  This  is  due  to 
different  reasons,  among  others  to  the  want  of  coopera- 
tive education  among  the  Dutch  working  class.  Of 
the  whole  capital  (share  and  mortgage),  <£13,000,only 
XI, 000  have  been  paid  off,  and  this  not  without  very 
great  difficulties.  However,  the  later  years  have  been 
the  best,  and  the  annual  amount  of  sales  and  rents  is 
now  X15,000,  being  X8,000  in  1886." 

A  great  variety  of  institutions  for  the  benefit  of  the 
*  Gould's  Report  on  Housing,  etc.  pp.  396,  397. 


164  A  DIVIDEND   TO  LABOR 

workingmen  have  been  gradually  established  by  Mr. 
Van  Marken,  all  centring  in  the  charming  Agneta 
Park,  beautifully  diversified  with  lakes,  trees,  lawns 
and  cottages.  There  are  two  savings-banks  in  the 
yeast  and  oil  works :  one  is  for  voluntary  savings, 
the  other  is  "  obligatory  for  a  part  of  the  premiums  ^ 
and  of  the  share  in  profits."  From  the  second  bank 
the  depositor  may  draw  half  a  year's  wages  in  case  of 
marriage,  and  two  weeks'  wages  on  the  birth  of  a 
child:  he  may  also  draw  for  private  insurance,  the 
acquisition  of  a  house,  and  similar  thrifty  purposes. 
On  December  31,  1896,  these  banks  had  on  deposit 
X7,850. 

In  case  of  illness  full  wages  are  paid  up  to  eight 
weeks  ;  in  severer  cases  the  United  Committee  on  the 
Interests  of  the  Employees  takes  charge,  fimds  being 
supplied  by  the  factories.  Full  wages  until  recovery 
are  paid  to  sufferers  from  accident :  if  the  disability 
is  complete,  or  death  ensues,  two  years'  wages  are 
given.  The  yeast  works  deposits  annually  with  an  in- 
surance company  a  sum  equal  to  nine  per  cent,  of  the 
workmen's  wages,  toward  an  old-age  pension  after 
sixty  years  of  age.  Forty  payments  (from  twenty  to 
sixty)  would  assure  a  pension  equal  to  the  average 
annual  wage.  If  the  workman  dies  before  reaching 
sixty,  his  widow  or  children  are  entitled  to  nine  per 
cent,  of  the  entire  amount  of  wages  earned  by  him  in 
his  whole  term  of  service.  Pensions  are  granted  also 
in  the  oil  works  and  the  printing  office.  A  general 
policy  protects  the  buildings  against  fire. 

The  commimity  building  or  hall  is  the  culture-centre 
of  the  park.     It  contains  a  library  and  reading-room, 

*  The  premium  system  is  very  fully  developed  in  these  works. 


PATRONAGE  IN  HOLLAND  AND  BELGIUM     165 

a  gymnasium,  a  concert  hall,  school-rooms  and  a  com- 
mittee-room. The  schools  and  classes  are  for  chil- 
dren of  all  ages,  apprentices  and  adults  of  both  sexes  : 
the  girls  and  boys  attend  work-schools.  There  is 
a  brass  band,  a  magic  lantern,  a  choral  society,  a 
horticultural  society,  a  "  Tent,"  or  summer  casino,  on 
the  recreation  ground  of  Agneta  Park,  with  bowHng, 
biUiard,  boat,  gymnastic  and  skating  clubs.  A  factory 
newspaper  is  issued  weekly,  under  Mr.  Van  Marken's 
editorship.  A  silver  cross  is  given  on  the  completion 
of  twelve  and  one  half  years,  and  a  gold  cross  at  the 
end  of  twenty-five  years'  service  in  the  yeast  works. 
The  United  Committee  is  a  general  body  composed  of 
the  different  committees  in  charge  of  the  various  clubs, 
societies  and  institutions  and  gives  unity  to  their 
management.  In  both  the  yeast  and  the  oil  works 
we  find  the  "  Kernel "  (like  the  noyau  of  the  Maison 
Leclaire),  or  Workmen's  Council,  made  up  of  three 
chambers  (each  having  its  own  chairman  and  secre- 
tary), meeting  as  a  whole  twice  a  year :  one  chamber 
is  made  up  of  the  fourteen  managers  :  a  second  of  the 
foremen  and  chief  clerks  (the  two  oldest,  and  eight 
elected  by  their  fellows  for  two  years)  :  a  third  of 
sixteen  workmen  (the  four  oldest  and  twelve  elected.)^ 

^  See  for  a  full  account  of  all  these  institutions  the  volume  by  Dr. 
J.  C.  Eringaard,  a  son-in-law  of  Mr.  Van  Marken,  Hollandiscke  Mus- 
terstdtten  personlicher  farsorge  von  Arbeitgebern  fur  ihre  Geschd/tsan- 
gehihrigen,  published  by  the  Van  Marken  Press.  Mr.  Van  Marken  is 
seconded  in  all  his  philanthropic  endeavors  by  his  wife,  after  whom 
the  park  was  named.  He  declares  that  the  prosperity  of  the  busi- 
ness is  not  the  cause  of  these  institutions,  but  their  result  in  large 
part.  The  money  spent  upon  them  is  not  thrown  away,  but  placed  at 
a  high  rate  of  interest.  Mr.  and  Mrs.  Van  Marken  take  part  in  the 
gatherings  of  the  working  people,  which  are  irreproachable  in  all 
respects  :  not  a  case  of  drunkenness  in  the  works  has  been  known. 


166  A   DIVIDEND  TO  LABOR 

The  firm  of  Gebriider  Stork  &  Co.,  machinists  and 
engineers,  at  Hengelo,  employing  300  men,  are  fol- 
lowers of  Mr.  Van  Marken  in  the  spirit  and  in  many 
of  the  details  of  their  welfare-institutions.  These  in- 
stitutions are  maintained  by  a  certain  percentage  of 
the  profits  (known  only  to  a  few  of  the  superior  em- 
ployees), which  is  assigned  to  the  whole  body  of  work- 
people. A  part  of  this  sum  goes  into  the  pension 
fund,  and  the  remainder  for  general  purposes.  In 
January,  1895,  when  the  firm  celebrated  its  twenty- 
fifth  anniversary  and  opened  the  new  casino,  it  in- 
augurated a  thorough  scheme  of  administration  of  its 
institutions.  Eight  persons  (three  members  of  the 
firm  and  five  selected  by  the  senior  workmen  from 
their  number)  constitute  the  board  of  directors  of  the 
"  Union  for  Promoting  the  Interests  of  the  Employees 
of  the  Works  of  the  Brothers  Stork  &  Co."  This 
board  names  committees,  varying  in  size,  on  the  casino, 
on  the  cafe  and  kitchen,  on  lectures,  library  and  read- 
ing-room, on  the  kindergarten,  and  the  cooking  and 
sewing  schools,  and  on  the  housekeeping  and  the  draw- 
ing schools :  and  a  Head  Committee  (two  employers 
and  two  workmen)  which  considers  all  the  plans  and 
proposals  of  the  other  committees.  When  approved, 
these  are  carried  out  by  the  sub-committees.  The 
workmen  contribute  three  per  cent,  of  their  wages  to 
the  pension  fund,  if  on  piece-work  (the  usual  system)  : 
if  they  are  on  day  wages,  the  firm  pays  this  percentage. 
The  capital  of  this  fund  is  loaned  to  help  the  men  in 
building  houses,  of  which  fifty  have  been  erected. 
The  widows'  and  orphans'  fund  is  assisted  by  the  firm. 

The  kindergarten  has  over  eighty  pupils :  the  ap- 
prentice schools  in  the  higher  grades  teach  physics 


PATRONAGE  IN  HOLLAND  AND  BELGIUM     167 

and  drawing,  great  importance  being  attached  by  the 
film  to  this  instruction.  In  case  of  the  apprentices 
who  earn  over  five  gulden  a  week,  sixty  per  cent,  of 
the  wages  are  deposited  at  five  per  cent,  interest :  half 
of  this  sum  is  paid  to  the  apprentices  on  reaching 
twenty-three  years,  and  the  other  half  is  at  the  dis- 
posal of  the  parents,  who  are  apt  to  let  it  accumulate, 
and  then  make  a  present  of  it  to  the  son  on  his  mar- 
riage, when  he  can  also  draw  the  other  portion. 

The  premium  system  gives  the  workman  ten  per 
cent,  extra  compensation  for  good  work ;  if  it  is  ex- 
traordinarily good,  fifteen  per  cent. :  monthly  premi- 
ums are  also  paid  to  the  best  workmen.  Matters  of 
this  sort  are  attended  to  by  the  Arbeiterausschuss  or 
Kern.  The  workman  may  contribute  to  a  voluntary 
savings  fund  (five  per  cent,  interest),  and  he  must 
contribute  to  the  sick  fund  21  per  cent,  on  his  wages. 
A  small  weekly  contribution  for  every  member  of  a 
family  assures  the  attendance  of  the  doctor  or  the 
midwife :  funerals  are  at  the  expense  of  the  general 
Verein.  The  usual  cooperative  store  and  bathing  fa- 
cilities are  not  wanting  at  Hengelo  ;  and,  as  at  Agneta 
Park,  there  is  a  weekly  factory  paper,  the  "  Fabrik- 
bote."  The  handsome  casino,  or  recreation  house,  built 
in  1895  at  an  expense  of  40,000  fl.,  contains  seven 
large  rooms,  some  for  the  use  of  the  schools  already 
mentioned,  others  being  the  kitchen,  the  restaurant, 
the  Hbrary,  and  the  social  hall,  fitted  with  a  neat  stage 
for  concerts,  theatricals  and  lectures  on  popular  sci- 
ence, especially  patronized  by  the  reading-union  called 
the  Lese- Abend:  here  centres  the  intellectual  and 
social  life  of  the  Hengelo  Works. 

In  the  Gastel  Beet  Sugar  Factory,  at  Oud-Gastel, 


168  A   DIVIDEND   TO  LABOR 

near  Roosendaal  (North  Brabant),  Herr  J.  P.  Vlekke, 
the  manager,  who  is  taken  by  Dr.  Eringaard  as  a  type  of 
the  Catholic-Socialist  employer,  finds  especial  difficulties  in 
the  way  of  the  usual  forms  of  welfare-institutions,  arising 
from  the  nature  of  the  business.  The  last  three  months  of 
each  year  are  the  busy  season,  and  400  persons,  including 
a  few  women  and  girls,  are  employed.  For  the  remainder 
of  the  year  only  100  can  be  utilized.  Herr  Vlekke  exerts 
himself  to  procure  work  for  the  others  with  the  beet-farmers 
as  far  as  may  be.  All  are  insured  against  old  age  in  the 
Allgemeine  Niederlandischen  Arbeiter  Bund,  the  firm  pay- 
ing a  variable  part  of  the  premiums  (not  far  from  half  in 
1895)  :  in  the  dull  season  of  the  year  it  pays  the  whole  of 
these  for  the  unemployed :  the  pension  is  three  florins  a 
week  after  sixty  years  of  age,  five  florins  after  sixty-five 
years.  If  the  insured  dies  before  reaching  sixty  years,  the 
heirs  are  entitled  to  the  premiums  paid.  A  sensible  rule  of 
the  widows'  and  orphans'  fund  allows  the  usual  three  florins 
a  week  for  the  children  to  be  drawn  by  the  father,  in  case 
of  the  death  of  his  wife.  Premiums  do  not  exist  to  any 
appreciable  extent  at  Oud-Gastel,  and  money  fines  are  un- 
known :  there  is  a  sick  fund,  modest  but  effective,  appara- 
tus for  first  help  in  case  of  accident,  provision  for  voluntary 
savings,  arrangements  for  cooperative  purchase  of  flour  and 
fuel,  a  small  library,  instruction  in  drawing,  musical  oppor- 
tunities, baths,  and  a  dining-hall,  used  on  Sundays  for  the- 
atrical and  musical  performances  and  dancing ;  and,  finally, 
a  fortnightly  paper,  "  Die  Kleine  Courant." 

Herr  "W.  Hovy,  the  director  of  the  Brewery  and  Vinegar 
Factory  De  Gekroonde  Valk  (now  a  stock  company,  for- 
merly Van  VoUenhoven  &  Co.)  of  Amsterdam  and  Dordrecht, 
sets  aside  a  certain  sum  from  the  annual  profits,  which  is 
divided  among  the  workmen  judged  to  be  most  deserving, 
but  the  workman  is  not  supposed  to  have  any  right  to  this. 
Like  Herr  Vlekke,  Herr  Hovy  pays  full  wages  for  holidays, 
being  convinced  that  "  a  holiday  cannot  be  properly  kept 
on  an  empty  stomach !  "     The  company  has  built  sixty-four 


PATRONAGE  IN  HOLLAND  AND  BELGIUM     169 

neat  houses  in  Amsterdam,  which  are  let  to  its  workmen  at 
two  thirds  of  the  usual  rent:  it  sells  pure  groceries  and 
other  supplies  from  one  of  these  houses,  retaining  the  profits. 
The  sick  employee  receives  half  or  full  wages  for  a  fort- 
night. The  company  makes  an  annual  payment  toward  an 
old-age  pension  for  each  person  employed,  although  it  does  • 
not  pledge  itself  to  do  this.  The  person  insured  can  make 
deposits  himself  at  four  per  cent,  interest.  The  heirs  have 
no  claim  in  case  of  his  death,  whether  the  pension  has  begun 
or  not.  There  is  a  widows'  and  orphans'  aid  society,  which 
is  not  a  fund  or  an  insurance.  This  Onderling  Hulphetoon 
is  supported  by  an  average  contribution  of  two  per  cent,  on 
wages  from  all  the  employees,  the  company  contributing 
twice  as  much.  The  assembly  of  the  workpeople  decides 
upon  the  size  of  their  contribution  and  of  the  assistance  to 
be  given :  in  March,  1893,  the  society  assisted  thirty  widows 
and  fourteen  children.  On  the  birth  of  a  child  the  father 
receives  an  extra  week's  wages. 

Other  Dutch  firms  which  maintain  various  institutions  for 
the  benefit  of  their  working  force,  on  a  less  elaborate  scale 
than  the  four  treated  in  detail  by  Dr.  Eringaard,  are  the 
chocolate  works  of  C.  J.  Van  Houten  and  Son,  at  Weesp ; 
the  machine  works  Werft  Conrad,  in  Haarlem,  and  Meine- 
veld,  in  Delft;  the  cigar  factory  of  Herr  Dobbelman,  in 
Rotterdam,  and  the  starch  works  of  Herr  Jacob  Duyvis,  in 
Utrecht.  

As  in  France,  so  in  Belgium,  there  is  a  state-regu- 
lated system  of  insurance  of  miners,  erected  on  the 
basis  of  a  remarkable  development  of  private  benefi- 
cence in  this  direction.  The  interference  of  the  State 
is  a  minimum  quantity :  there  is  no  costly  bureaucratic 
system  :  the  expense  of  administration  is  very  low  (two 
per  cent.),  and  there  has  been  a  great  absence  of 
friction. 1 

^  See  Willoughby,  cp.  cit.,  chapter  v. :  "  the  best  example  of  the 


170  A   DIVIDEND   TO  LABOR 

In  1839  the  Liege  Mutual  Insurance  Fund  was  es- 
tablished by  twenty-five  mining  companies,  and  it  was 
followed  by  five  other  central  funds,  the  six  dividing 
the  whole  country  into  as  many  districts.  These  funds, 
bearing  the  names  of  Liege,  Namur,  Mons,  Charleroi, 
Centre,  and  Luxembourg,  report  annually  to  the  govern- 
ment and  "  are  subjected  to  a  financial  control."  Each 
fund  is  independent,  making  its  own  rules,  but  there  is 
a  general  likeness.  In  the  Mons  fund  the  employer 
pays  as  much  as  the  employee,  three  fourths  of  one 
per  cent,  of  the  latter's  wages :  in  that  of  the  Centre, 
the  sum  is  1^  per  cent. :  in  Luxembourg  one  half  of 
one  per  cent. :  in  Charleroi  the  employers  pay  the  whole 
amount,  1|  per  cent,  on  wages :  in  Liege  they  pay  2 
per  cent. :  in  Namur  about  half  a  franc  per  person  a 
month.  The  funds  are  assisted  by  subsidies  from  the 
State  and  the  provinces,  interest  on  invested  capital 
and  gifts  and  bequests.  The  pensions  paid  by  them 
are  chiefly  for  miners  injured  by  accidents.  In  the 
Centre  fund  ^  the  monthly  amount  varies  from  the  sum 
paid  to  a  workman  still  able  to  earn  from  71  to  85 
per  cent,  of  his  usual  wages  (2.40  to  8  fr.)  to  that 
paid  to  the  totally  disabled  man  (15.40  to  30  fr.,  as 
he  is  married  or  single,  or  under  or  over  nineteen  years 
of  age).  In  the  same  fund  old-age  pensions  vary  from 
15  to  20  fr.  a  month,  with  the  usual  conditions :  but 
this  is  an  exception  among  these  funds.  Pensions  are 
granted  to  the  immediate  relatives  of  workmen  who 
are  kUled  by  an  accident.     In  1894  there  were  insured 

insurance  of  a  particular  class  of  workingmen,"  "  the  most  interest- 
ing type  of  insurance  institutions  in  Belgium,"  he  calls  the  system. 
I  am  indebted  for  my  details  to  Mr.  WUloughby's  volume. 

^  See  Mr.  Willoughby's  report  in  the  U.  S.  Bulletin  of  Labor  for 
November,  1896. 


PATRONAGE  IN  HOLLAND  AND  BELGIUM     171 

in  the  six  funds  117,359  persons :  the  expenditures 
were  -$470,781.81 ;  the  value  of  pensions  then  running, 
$461,312.27  ;  and  the  assets,  $1,534,216.44.  Of  the 
total  receipts,  $515,890.54,  the  employers  contrib- 
uted $407,511.84,  and  the  employees  $39,836.16 : 
$57,910.23  came  from  interest,  and  $10,562.32  from 
subsidies.  In  1893,  16,920  persons  were  aided.  In 
1884-1893  of  the  average  number  insured,  15.6  per 
cent,  received  aid  annually. 

The  Belgian  law  requires  each  mining  company  to 
maintain  a  special  fund  to  pro\ade  for  sickness  and 
minor  accidents.  The  employee  pays  a  percentage  on 
his  wages,  and  the  employer  so  many  times  as  much  — 
usually  a  far  greater  sum.  Regulations  like  those  in 
France  govern  these  funds.  In  1893  the  receipts  were 
$49,687.85  from  the  workingmen,  and  $299,240.13 
from  the  mine  proprietors,  making  a  total  of  $348,- 
927.98  :  the  expenditures  were  some  $7,000  more.  I 
will  give  some  particulars  concerning  other  varieties  of 
institutions  in  three  Belgian  mining  and  foundry  com- 
panies. "  Almost  all  of  the  larger  employers  of  labor," 
in  Belgium,  says  Mr.  Willoughby,  as  in  France,  have 
established  private  insurance  funds.  "  Notable  ex- 
amples are  the  great  zinc  works  of  Vieille  Montague  ; 
the  iron  works  of  Cockerill  &  Co.  ;  Solvay  &  Co. ; 
M.  Rey,  at  Leideberg ;  and  various  railway  companies." 

La  Soci6t6  de  la  Vieille  Montague  (Kelmisberg), 
at  Ch6n6e,  near  Li6ge,  is  one  of  the  largest  zinc 
mining  and  manufacturing  companies  in  the  world, 
with  branches  in  France,  Germany,  Sweden,  England, 
Italy,  Spain,  Tunisia,  and  Algeria.  Everywhere  it 
has  been  much  concerned  for  the  comfortable  housino; 
of  its  employees.     It  encourages  building  societies  or 


172  A  DIVIDEND   TO  LABOR 

builds  houses  itself,  according  to  local  conditions :  or 
it  sells  land  or  material,  or  both,  at  cost  or  near  it. 
Its  houses  are  usually  single  dwellings  of  four  rooms 
with  gardens  and  stables,  renting  for  considerably  less 
than  one  tenth  of  the  employee's  usual  wages  (the 
premium  system  increases  wages  from  10  to  25  per 
cent.).  The  sale  of  liquor  is  prohibited  in  the  work- 
men's cites  as  in  other  places  of  the  kind,  and  the 
houses  must  be  kept  neat  and  clean.  In  1897,  1,700 
employees,  one  out  of  six,  had  become  owners  of  their 
homes.  The  company  pays  5  per  cent,  interest  on 
deposits  in  its  savings  fund  (to  900  persons  in  1889, 
or  13  per  cent,  of  the  whole  number  employed :  in  1898, 
1,608  workmen  had  3,000,798  fr.  to  their  credit). 
Its  aid  fund  for  the  usual  purposes,  as  well  as  the 
pension  fund  for  workmen,  is  supported  entirely  by  the 
company.  The  latter  fund  gives  pensions  amounting 
to  one  fifth  of  the  workman's  highest  wages  plus  one 
centime  per  day  for  each  year  of  service  after  the 
fifteenth.  During  the  ten  years,  1887—1897,  the  two 
funds  expended  a  yearly  average  of  513,810  fr. :  for 
1850-1860  the  proportion  of  this  aid  to  wages  was 
3.53  per  cent. :  for  1890-1896  it  was  7.61  per  cent. 
For  the  superior  employees  the  company  has  also 
established  a  pension  scheme:  the  employee  pays  5 
per  cent,  on  his  wages  and  the  company  adds  as  much. 
A  home  for  pensioned  workmen  was  erected  in  1893 
at  an  expense  of  300,000  fr.,  with  an  orphan  asylum, 
sheltering  twenty-five  children.  The  company  im- 
ports large  quantities  of  light  wines  from  Spain  and 
Italy,  which  it  sells  below  cost  to  the  workmen,  as  a 
preventive  of  alcoholism.  On  schools  and  churches  it 
had  spent,  to  1897,  some  900,000  fr.,  and  on  amuse- 


PATRONAGE  IN  HOLLAND  AND  BELGIUM    173 

ments  and  recreations,  175,000  fr.  The  force  is  very 
permanent,  and  there  have  been  no  strikes. 

The  Marcinelles  and  Couillet  Company  has  coal 
mines  and  blast  furnaces  in  these  two  places  in  Bel- 
gium, and  employs  between  5,000  and  6,000  workmen. 
The  mines  are  in  the  Charleroi  district,  and  the  com- 
pany pays  1|  per  cent,  on  wages  to  the  central  accident 
and  pension  fimd.  For  employees  other  than  miners 
the  company  supports  an  aid  and  retiring  fund  by 
retaining  3  per  cent,  on  the  workman's  wage  and  2 
per  cent,  on  the  employ&s  salary,  contributing  itself 
a  sum  equal  to  1  per  cent  on  wages  and  salaries,  all 
the  fines  and  unclaimed  wages,  and  occasional  dona- 
tions. In  two  schools  foimded  by  the  company  353 
children  between  three  and  seven  years  old  are  in- 
structed. The  girls  pass  into  the  company's  primary 
school,  remaining  until  twelve  :  the  boys  attend  the 
communal  schools  subsidized  by  the  company.  A 
great  nmnber  of  houses  have  been  built  by  it,  which 
are  rented  at  low  rates.  A  workman  can  pay  one 
fifth  in  cash,  and  acquire  a  home  in  eight  years,  by 
monthly  installments  equal  to  ordinary  rent. 

The  coal  mines  of  Mariemont  and  Bascoup  (Hai- 
nault)  are  distinct  organizations,  but  imder  the  same 
management.  They  have  become  weU  known  to  stu- 
dents of  labor  questions  through  their  admirable  Charri' 
bres  d" Explications  and  Conseils  de  Conciliation  et 
d  Arbitrage,  which  are  model  methods  of  settling  dif- 
ferences in  an  industrial  establishment.  The  two 
companies  employ  over  6,000  men.  They  have  built 
more  than  600  houses  which,  as  M.  BaUaert  of  Bascoup 
says,  are  "spacieuses,  commodes,  coquettes  meme." 
They  are  satisfied  with  a  return  of  2^  per  cent,  on  an 


174  A   DIVIDEND   TO  LABOR 

investment  of  more  than  2,000,000  fr.  The  com- 
panies advance  money  for  building  purposes :  forty 
houses  a  year,  on  an  average,  are  built  by  the  em- 
ployees themselves  :  and  over  25  per  cent,  now  own 
their  homes.  The  proprietors  of  the  mines  spend 
70,000  fr.  a  year  on  the  health  service,  employing 
twelve  doctors  and  fourteen  pharmacists :  a  sanitary 
commission  has  charge  of  this  work.  The  choice  of 
his  physician  is  left  to  the  workman,  who  contributes 
nine  tenths  of  a  franc  a  month. 

The  two  mines  belong  to  the  Centre  district  of  Bel- 
gium :  in  this  district  the  workmen  are  represented  on 
the  council  of  the  Provident  Society.  A  special  aid 
fund  for  the  sick  and  injured  is  supported  by  the  com- 
panies and  the  men  jointly :  the  companies  contribute 
20,000  fr.  a  year  for  pensions.  There  are  mutual  aid 
societies  of  the  men,  in  thirteen  sections  with  3,250 
members,  and  they  have  also  formed  a  large  number 
of  savings  societies  which  invest  in  bonds  of  Belgian 
cities.  The  spirit  of  these  welfare-institutions  is  "  self- 
help  "  for  the  employees.  The  companies  wish  to  in- 
tervene only  so  far  as  the  workmen  cannot  well  take 
the  initiative  :  they  subscribe  to  the  creed  "  Le  patron, 
en  matiere  de  tutelle,  doit  preparer  son  abdication." 
The  Morlanwelz  Technical  School,  subsidized  by  the 
companies,  offers  a  full  course  of  industrial  training. 
Music  is  the  affair  of  the  noted  musical  society, 
"  L'Harmonie  :  "  it  has  a  hall  for  winter  and  a  park 
for  summer  concerts,  with  a  fine  library,  and  it  sends 
its  most  promising  pupils  to  the  best  teachers  in 
Brussels;  there  is  also  a  choral  society,  with  excur- 
sion and  horticultural  associations.  The  Morlanwelz 
Society  for   Popular   Education    maintains   frequent 


PATRONAGE  IN  HOLLAND  AND  BELGIUM    175 

lectures,  diffuses  books  and  publishes  a  weekly  paper. 
The  companies  have  founded  cooperative  stores :  they 
sell  coal  to  workmen  at  two  thirds  the  regular  price, 
and  also  supply  wood  and  gas  at  reduced  rates.  Bread 
ovens  are  numerous,  and  bathrooms  also. 


The  most  important  instance  of  welfare-institutions  in 
Italy  is  the  Rossi  "Woolen  Mills  at  Schio,  Vicenza.  It 
employs  5,000  persons,  and  since  1873  has  expended  5  per 
cent,  of  the  net  profits,  equal  to  1^  per  cent,  on  wages,  on 
the  support  of  numerous  institutions  for  the  employees.^ 
The  hst  includes  a  creche,  infant  and  primary  schools,  a 
library,  baths,  a  laundry,  an  ice-house,  a  hospital,  coopera- 
tive stores,  a  mutual  aid  society,  a  savings  fund,  pensions 
and  subsidies,  improved  dwellings,  a  theatre  and  a  gym- 
nasium. "  The  management  considers  the  expense  of  these 
philanthropic  institutions  as  only  proper  aid  to  its  force  of 
workers :  "  and  it  keeps  them  up  in  bad  years  as  well  as  in 
good. 

The  Iron  Works  of  the  Hungarian  State  at  Di6s- 
Gyor  employ  some  6,000  workmen.  The  welfare-institu- 
tions to  be  found  here  include  sick  and  pension  funds,  with 
free  medical  attendance  ;  a  hospital  of  modern  style  ;  a  fine 
bath-house,  the  fees  being  two  kreutzers  (one  cent)  for  an 
ordinary  bath,  and  four  kreutzers  for  a  Turkish  bath  ;  a  club 
with  a  library  of  1,000  volumes ;  choral  and  musical  so- 
cieties ;  a  dining-hall  for  4,000  persons,  where  a  great  organ 
plays  during  meals  (a  dinner  can  be  had  in  the  restaurant 
for  fourteen  kreutzers)  ;  a  cup  of  tea  (four  kreutzers)  may 
be  had  by  the  workmen  in  the  shops,  in  winter,  or  a  glass  of 
beer  in  summer  (five  kreutzers)  ;  lawn  tennis  grounds  and  a 
skating  pond  ;  a  cooperative  store,  with  slaughter-house  and 
bakery  ;  a  kindergarten  and  an  elementary  school.     Similar 

^  These  are  described  in  a  pamphlet,  prepared  for  the  Turin  Ex- 
position of  1898  —  Memoria  sulle  Istituzioni  morali  private  e  collettive 
fondate  dal  Senatore  Alessandro  Rossi. 


176  A   DIVIDEND  TO  LABOR 

institutions  exist  in  the  State's  other  iron  works  at  Zoly6m- 
Brez6. 

The  Hungarian  State  has  an  elaborate-  system  of  insti- 
tutions for  the  benefit  of  employees  on  the  State  Rail- 
ways. A  pension  fund  for  19,695  superior  employees 
held  11,930,801  fl.  in  1895  :  there  was  a  sick  fund  with 
3,289,246  fl.,  and  an  aid  fund  with  146,583  fi. ;  a  consum- 
verein  :  a  savings  fund  with  951,812  fl.  on  deposit ;  several 
arbeitercolonien,  with  schools,  etc. ;  and  numerous  asso- 
ciations for  musical  and  general  culture. 

The  Carlsberg  Breweries  in  Copenhagen  build  ex- 
cellent houses  which  their  workmen  may  acquire  on  easy 
terms.  In  the  old  Carlsberg  brewery,  with  270  employees, 
all  are  entitled  to  a  pension  after  ten  years'  service  :  the 
pension  fund  is  now  2,500,000  kronen.  A  Carlsberg 
family  fund  afEords  aid  since  1881  to  sick  or  infirm  work- 
men, in  the  new  brewery  (230  employees)  as  in  the  old. 


CHAPTER  VII 

BRITISH   employees'    INSTITUTIONS 

When  one  enters  the  labor  world  of  England  lie 
finds  a  different  sentiment  from  that  prevailing  in 
France  or  Germany.  "  Paternalism,"  or  anything 
that  savors  of  paternalism,  is  far  less  agreeable  to 
the  English  workman  than  to  the  French  or  German 
operative.  Employers'  institutions  for  the  benefit  of 
their  workmen  have  had  a  much  less  extensive  devel- 
opment, in  the  face  of  the  trade-union,  the  cooperative 
store  and  the  friendly  society.  But  that  there  is 
room  in  England  for  the  interest  of  the  employer  in 
his  employees  to  show  itself  in  an  admirable  and  com- 
prehensive fashion  is  sufficiently  evident  from  several 
examples. 

The  Lever  Brothers,  Limited,  have  built  up  a  new 
industry  (begim  in  1886,  and  moved  to  its  present 
location  three  years  later)  with  as  much  concern  for 
its  moral  and  social  aspects  as  for  its  material  pro- 
cesses. They  illustrate  what  can  be  done  where  there 
is  a  free  field  for  the  employer  to  work  in.  Port 
Sunlight  is  the  name  of  the  manufacturing  commu- 
nity foimded  by  the  Lever  Brothers  on  a  branch  of  the 
Mersey,  three  miles  from  Birkenhead.  They  have 
bought  174  acres  of  level  grazing  ground,  the  works 
now  covering  fifty-five  acres,^  and  the  remainder  being 

^  The  floor  of  the  ■working-rooms  is  composed  of  wooden  blocks  on 
concrete  ;  this  keeps  the  feet  warm  and  di-y. 


178  A  DIVIDEND   TO  LABOR 

devoted  to  the  village.  Some  2,200  persons  are  em- 
ployed, the  majority  of  whom  live  at  Port  Sunlight. 
which  has  about  3,000  inhabitants.  The  works  turn 
out  2,400  tons  of  soap  a  week :  all  the  printing  of  the 
firm  is  done  in  one  department :  another  is  devoted  to 
the  manufacture  of  boxes  of  pasteboard  and  of  wood : 
the  firm  has  a  cotton-seed  oil  factory  at  Vicksburg 
on  the  Mississippi,  and  a  cocoanut  oil  factory  at  Syd- 
ney in  New  South  Wales. 

The  Lever  Brothers  have  erected  nearly  500  "  Old 
English  "  cottages,  of  varied  architecture,  in  the  park- 
like settlement  adjoining  the  works.  In  letting  these 
red  brick  and  half-timbered  houses  they  formerly  prac- 
ticed an  unusual  method  of  dividing  profits  with  their 
employees.  What  would  ordinarily  have  been  the 
bonus  was  applied  to  the  construction  of  houses,  in 
the  allotment  of  which  the  men  longest  in  service  had 
the  preference,  and  there  was  much  competition  for 
them.  Each  cottage,  occupied  by  a  family,  has  three 
bedrooms  at  least,  and  a  bathroom,  is  lighted  by  gas, 
and  has  a  small  lawn  about  it.  Rents  ranged  from  3s. 
a  week  to  3s.  Qd.  for  houses  with  parlors:  there  are  no 
taxes.  At  the  end  of  the  tenant's  first  year  the  rent 
was  reduced  thirty  per  cent. ;  at  the  end  of  the  third 
year  thirty  per  cent,  more,  and  at  the  end  of  the  fifth 
year  the  same  percentage.  The  tenant  thenceforth 
paid  ten  per  cent,  of  the  original  rent  to  meet  the 
expenses  of  maintenance  and  repairs.  This  arrange- 
ment was  discontinued  after  a  time,  the  firm  consid- 
ering that  living  rent-free  almost  would  impair  the 
workman's  feelings  of  self-respect  and  independence. 
A  tract  of  land  is  allotted  for  kitchen  gardens :  the 
tenant  pays  Is.  a  year  for  the  use  of  his  strip,  contain- 


BRITISH  EMPLOYERS'  INSTITUTIONS     179 

ing  eight  rods :  water  is  supplied  free.  Two  dwellings, 
it  may  be  mentioned,  are  careful  reproductions,  ex- 
ternally, of  the  Shakespeare  house  at  Stratford-upon- 
Avon. 

The  workmen's  houses  face  on  wide  roads  of  boule- 
vard style,  shaded  by  elm  and  chestnut  trees ;  there  is 
a  centrally  situated  park,  a  large  recreation  ground  on 
one  side,  and  in  most  directions  the  open  country  or 
the  river  is  seen.  On  a  prominent  corner  stands  the 
village  shop,  a  cooperative  store  for  the  community. 
The  schools,  built  in  1896,  and  supported  by  the  firm, 
form  a  large  and  pleasing  group  of  buildings  of  ecclesi- 
astical architecture,  accommodating  500  children,  who 
follow  the  usual  board  courses  of  study.  The  central 
hall  of  the  main  building  is  used  for  religious  purposes 
on  Sundays.  The  Girls'  Institute  is  located  on  another 
corner,  with  a  tennis  ground  opposite.  It  has  classes 
in  cooking,  confectionery,  dressmaking  and  shorthand ; 
eighty  girls  learn  in  one  of  these  classes  to  make  their 
own  clothing :  the  fee  is  Is.,  to  which  the  firm  adds  3s. 
A  restaurant  furnishes  such  a  meal  as  the  girls  desire 
for  dinner  for  Id.  to  4c?.  The  fee  for  the  reading- 
room  in  the  institute  is  Is.  a  year :  there  is  a  girl's 
social  club  using  the  tennis  court  and  other  means  of 
recreation.  Gladstone  Hall  is  an  attractive  building 
which  contains  a  large  kitchen  and  dining-room :  here 
food  brought  in  by  the  employees  can  be  warmed 
without  charge:  and  a  cooperative  arrangement  pro- 
vides dinners  ranging  in  price  from  2d.  to  Qd. :  there 
is  a  special  dining-room  for  women.  The  hall  is  open, 
at  the  end  of  the  day's  business  done  in  it,  as  a  place 
of  general  resort.  Every  Thursday  evening  in  the 
winter  months  a  first-class  entertainment  is  provided 


180  A  DIVIDEND  TO  LABOR 

by  the  firm :  Sunday  evening  lectures  or  concerts  are 
given  here,  or  the  programmes,  partly  secular,  partly 
religious,  known  as  "  Pleasant  Sunday  Evenings." 
The  Men's  Club,  where  the  usual  features  of  such 
organizations  are  found,  —  bowling  alleys,  billiard  and 
smoking  rooms,  —  faces  a  pretty  bowling-green.  The 
brass  band  of  Port  Sunlight  has  uniforms  and  instru- 
ments provided  for  it  by  the  Lever  Brothers.  The 
various  clubs  and  institutions  are  now  on  a  self-sup- 
porting basis,  and  are  managed  by  their  own  commit- 
tees. There  is  no  public-house  in  the  place.  The 
majority  of  the  men  are  trade-unionists  ;  the  firm  does 
not  interfere  in  any  way  with  such  membership.  A 
system  of  premiums  on  wages  has  the  effect  of  in- 
creasing them  in  some  departments  twenty-five  or  thirty 
per  cent. ;  in  all  the  departments  wages  are  higher 
than  elsewhere  in  the  district.  Work  begins  for  men 
at  7.50  o'clock  a.  m.  and  stops  at  5.30  p.  m.  —  on 
Saturday  at  12.30  p.  m.  The  women  work  from  8  a.  m. 
to  5  P.  M.  —  on  Saturday  to  12  m.  Deducting  the 
hour  for  dinner,  this  arrangement  gives  forty-four 
hours  a  week  for  women  and  forty-eight  hours  for 
men.  The  result  has  been  very  satisfactory  to  the 
firm.  One  savings-bank  works  under  the  auspices  of 
the  company,  and  another  in  connection  with  the  Em- 
ployees' Provident  Society.  A  sick  and  funeral  club 
is  on  a  self-supporting  basis. 

In  the  Belle  Sauvage  works  of  the  printing  and 
publishing  house  of  Cassell  &  Co.,  London  (1,000 
employees),  the  visitor  finds  a  kitchen  and  dining- 
rooms  where  meals  are  furnished  to  the  workers  at 
cost.  The  glee  club,  musical  association,  athletic  club, 
ambulance  corps  and  fire  department  are  voluntary 


BRITISH  EMPLOYERS'  INSTITUTIONS     181 

organizations.  Saturday  afternoon  excursions  to 
museums,  picture  galleries  and  places  of  historic 
interest  in  and  around  London  are  occasionally  organ- 
ized in  the  spring  and  autumn,  when  the  most  compe- 
tent persons  in  the  city  serve  as  guides.  The  wash 
basins  and  water-closets  for  the  works  are  in  an  addi- 
tion running  up  one  side  of  the  building ;  these  rooms, 
lined  with  porcelain  tiles,  are  separated  from  the  main 
building  by  closed,  tight-fitting  doors.  The  Belle 
Sauvage  sick  fund,  an  employees'  organization,  is  sup- 
ported by  a  weekly  contribution  of  two  pence  from 
each  member.  In  1878  the  amount  payable  on  the 
death  of  a  member  was  increased  £b  from  the  firm, 
if  the  deceased  had  been  employed  less  than  seven 
years,  and  <£10  if  a  longer  time :  five  years  is  now  the 
dividing  line. 

This  was  a  part  of  the  large  scheme  devised  by  the 
company  in  that  year  for  promoting  the  welfare  of 
their  permanent  staff.  They  voted  to  "  set  aside  a 
fixed  proportion  of  their  profits  to  form  a  fund  out  of 
which  certain  benefits  might,  at  their  discretion,  be 
paid."  The  scheme  has  since  been  several  times  re- 
vised, each  time  in  the  direction  of  greater  hberahty 
to  the  employees,  a  course  made  feasible  by  the  wise 
actuarial  calculations  which  have  always  exceeded  the 
demands  made  upon  the  fund.  Since  1896  all  the 
employees  have  been  within  the  operation  of  the  fund. 
They  are  divided  into  three  classes,  the  members  of 
which  shall  be  entitled  to  varying  amounts,  after  five 
years  of  service,  if  incapacitated  for  labor  by  accident 
or  disease  or  by  old  age  after  sixty-five  years:  the 
same  sums  are  to  be  paid  to  the  family  or  the  repre- 
sentative of  a  member.    These  amounts  run  from  <£30 


182  A  DIVIDEND  TO  LABOR 

to  a  third-class  person,  after  five  years'  service,  up 
to  twice  that  amount  for  one  of  the  first  class ;  the 
amount  being  two  and  a  half  times  as  large  in  each 
class  after  twenty  years'  service.  In  the  period 
1878-1896,  payments  were  made  to  151  persons  in 
sums  varying  from  X5  to  £147  10s.,  and  amounting 
in  all  to  X7,868  14s.  6d.  The  trustees  of  the  fund 
now  hold  778  fuUy  paid  shares  of  Cassell  &  Com- 
pany, valued  at  some  .£15,000.  An  emergency  fund 
provides  for  medical  service  to  employees  at  a  nominal 
fee  of  6d.  for  three  months  from  the  doctor's  first 
visit ;  seventy  to  eighty  persons  a  year  avail  them- 
selves of  this  privilege.  In  1878-1895  some  .£711 
were  spent  in  exceptional  relief,  and  X936  granted  in 
temporary  loans. 

Six  small  pension  funds,  founded  by  special  trust 
deeds,  from  partners  or  their  families,  secure  pensions 
varying  from  £S  to  X20  a  year  for  nine  persons.  In 
order  to  encourage  life  and  accident  insurance,  the 
company  in  1889  made  arrangements  with  msurance 
societies,  which  agreed  to  take  monthly  premiums  at 
the  same  rate  as  for  yearly  premiums.  The  company 
reserve  the  amount  from  salaries  or  wages,  and  the 
commission  allowed  them  as  agents  is  divided  among 
the  insured.  Five  share  investment  societies  have 
been  formed  among  the  employees  (all  are  eligible) 
for  the  easy  acquirement  of  shares  in  the  company  by 
the  payment  of  a  shilling  a  week.  The  Belle  Sauvage 
Company,  for  instance,  had  taken  up  and  fully  paid 
for  1,018  shares  in  1886.  A  sixth  society  is  now  in 
operation,  its  predecessors  having  attained  the  object 
for  which  they  were  formed. 

Hazell,  Watson  and  Viney,  Limited,  is  the  title  of 


BRITISH  EMPLOYERS'  INSTITUTIONS     183 

a  well-known  company  of  London  engaged  in  printing  and 
publishing.  The  works  are  situated  in  Kirby  Street  and 
Long  Acre,  London,  and  in  Aylesbury,  Bucks.  The 
employees  number  1,300,  and  the  wages  bill  runs  up  to  more 
than  £80,000  a  year.  The  chairman  of  the  directors  is 
Walter  Hazell,  M.  P.  In  his  introduction  to  the  fifty-six 
page  pamphlet,  "  After  Hours,"  which  gives  an  account  "  of 
the  recreative,  educational  and  social  institutions  at  work  " 
among  the  employees  of  the  company,  he  speaks  of  the 
diverse  fortunes  of  such  institutions.  "  Some  schemes  have 
been  started  with  a  good  deal  of  enthusiasm,  and  in  the 
course  of  time  they  have  had  to  be  improved  or  even  dis- 
continued : "  among  the  last  is  a  system  of  profit  sharing. 
"  Others  have  kept  on  from  year  to  year  growing  in 
strength  and  in  interest." 

The  company  "  do  not  make  a  fetich  of  the  virtue  of 
thrift.  It  is  only  one  of  many  good  habits,  and,  like  other 
virtues,  may  be  carried  to  an  excess  and  become  a  vice. 
But,  in  general,  few  will  question  the  social  advantage  to  a 
man  of  carefully  husbanding  his  resources  till  he  becomes 
a  shareholder  in  the  concern  he  works  in ;  and  this  is  the 
pleasing  condition  of  hundreds  of  our  staff  .  .  .  the  total 
number  [of  workmen  investors]  reaches  hundreds,  and  the 
value  of  their  investments,  when  the  payments  are  com- 
pleted, will  approach  £30,000,  no  small  part  of  the  capital 
required  to  work  the  concern."  The  company  savings- 
banks  are  three  in  number,  the  first  having  been  opened  in 
1876.  An  employee  of  the  company  is  the  honorary  secre- 
tary of  each  bank,  and  he  is  in  attendance  at  the  London 
houses  to  receive  and  pay  out  money  once  a  week,  while 
wages  are  being  paid.  At  Aylesbury,  a  half  hour  on  Mon- 
day is  given  to  this  purpose.  Interest  was  five  per  cent, 
until  the  latter  part  of  1898,  when  it  was  reduced  to  four 
per  cent.  On  January  7,  1899,  the  accounts  last  made  up 
showed  438  depositors  in  the  three  presses,  who  had  £8,512 
7s.  Id.  to  their  credit.  "  As  security  to  the  depositors 
the  company's  four  per  cent,  debentures  to  the  amount  of 


184  A   DIVIDEND   TO  LABOR 

£10,000  are  held  by  the  trustees  .  .  .  acting  on  behalf  of 
the  depositors  under  a  suitable  trust  deed."  Referring  to 
old-age  pensions,  the  company  calls  attention  to  the  fact 
"that  2s.  a  week,  deposited  from  the  age  of  eighteen  to 
sixty,  at  four  per  cent,  compound  interest,  would  amount  to 
about  £550.  This  sum,  at  the  present  rate  of  investment, 
would  purchase  a  life  annuity  from  the  age  of  sixty  of 
nearly  £1  a  week." 

The  London  houses  support  a  sick  fund,  with  276  mem- 
bers, who  pay  3d.  a  week,  and  twenty-eight  half  members 
(those  whose  wages  amount  to  ten  to  twenty  shillings  a  week  : 
they  pay  half  fees  and  receive  half  benefits).  The  highest 
sum  that  can  be  paid  to  a  member  in  a  year  is  £9  15s. 
There  is  a  similar  fund  at  Aylesbury  with  173  members 
and  forty-three  half-members  (in  1896).  "The  directors 
have  at  their  disposal  a  certain  number  of  letters  for  Con- 
valescent Homes,"  and  for  several  hospitals  and  medical  aid 
societies.  The  Provident  Fund  meets  "the  needs  of  the 
members  during  exceptional  sicknesses  and  calamity,  and 
also,  to  a  limited  extent,  helps  their  families  on  the  occasion 
of  a  member's  death."  It  was  started  by  a  small  donation 
from  the  firm,  which  has  recently  contributed  £300  a  year. 
The  500  membei-s  pay  Id.  a  week  (£109  in  1897)  :  the 
capital  is  now  £3,352,  managed  by  trustees  independently 
of  the  fortunes  of  the  firm.  "  The  main  call  upon  the  fund 
is  a  payment  of  £15,  on  the  decease  of  a  member,  to  his 
nearest  relative,  with  an  additional  £5  if  there  be  a  child 
under  fourteen  years  of  age."  "  Practically  all  the  employees 
who  are  eligible  have  elected  to  become  members,  though 
the  great  majority  are  also  members  of  one  or  other  of 
the  great  Friendly  Societies,"  and  also  of  the  sick  funds 
of  the  company.  According  to  a  plan  adopted  in  1898, 
any  member  who  desires  a  loan  of  a  moderate  amount 
toward  building  a  house,  buying  shares  or  some  other  pur- 
pose of  thrift  is  eligible  to  a  loan  from  the  directors  of  the 
company  at  four  per  cent.  A  small  additional  charge  is 
made   to  insure  the  applicant's  life,  so   that  if  he   should 


BRITISH  EMPLOYERS*  INSTITUTIONS     185 

die  before  full  payment  the  family  will  not  be  disturbed 
in  the  property  acquired. 

Three  distinct  schemes  have  enabled  employees  of  Hazell, 
Watson  and  Viney  to  become  shareholders  in  the  company. 
The  first,  Mr.  Hazell's,  led  to  the  ownership  by  160  per- 
sons of  444  shares,  the  scheme  terminating  in  1897.  Each 
share  was  purchased  at  its  market  value,  £17,  and  one 
shilling  a  week  was  paid  for  340  weeks,  making  the  same 
amount.  In  all  this  time  the  subscribers  received  the  divi- 
dends earned  (10  per  cent.,  more  recently  9  per  cent.) ; 
thus  nearly  all  the  premiums  paid  by  the  subscriber  were 
returned  to  him  in  dividends,  "and  ultimately  the  share 
became  his  property  at  three  quarters  its  market  value :  " 
and  arrangements  were  made  that,  should  the  subscriber 
die  at  any  time  after  paying  the  first  installment,  his  family 
would  own  the  share  without  further  payment.  "  The 
payments  were  made  with  great  regularity  for  the  period  of 
six  and  a  half  years."  Shortly  after  Mr.  Hazell's  scheme 
came  to  a  close,  the  company  repeated  his  offer,  and  the 
company  Scheme  No.  2  is  now  in  force.  Between  its 
opening,  April  1,  1897,  and  September  30,  1897,  259  per- 
sons subscribed  towards  401  shares  £1,042  5s.  8d.  While 
Mr.  Hazell's  scheme  was  still  in  progress,  the  company 
put  out  its  Scheme  No.  1,  differing  in  system  but  "  not  in 
value."  Employees  could  acquire  a  limited  number  of 
shares  by  the  weekly  payment  of  a  shilling,  until  they  had 
paid  £12  10s.,  and  the  dividends  were  not  to  come  to  them 
until  all  the  payments  were  made.  This  scheme  was  not  so 
popular  as  the  first  one,  though  more  simple  in  its  operation  ; 
but  ninety  persons  began  September  7,  1895,  to  subscribe 
for  175  shares,  and  they  had  paid  in  £1,817  13s.  on  March 
31,  1898.  The  dividends  on  shares  are  paid  free  of  incon\e 
tax,  this  being  previously  paid  out  of  the  general  profits  of 
the  company.  If  the  holder  is  not  liable  to  an  income  tax, 
it  arranges  to  have  the  tax  that  has  been  paid  returned  to 
him. 

A  refreshment  room  has  been  supported  by  the  company 


186  A  DIVIDEND  TO  LABOR 

since  1878,  at  Kirby  Street,  providing  light  luncheons; 
there  has  been  a  deficit,  which  has  been  gradually  reduced 
from  £420  to  £115  ;  if  ever  there  is  a  profit  made,  it  wiU  be 
applied  for  the  benefit  of  the  employees,  as  at  Aylesbury. 
Here  the  company  provide  five  o'clock  tea  and  coffee :  "  the 
charge  is  three  pence  a  week  for  five  afternoons,  for  nearly 
a  pint  of  tea  or  coffee  with  milk  and  sugar.  This  small 
charge  has  more  than  covered  the  bare  cost  of  the  materials, 
the  firm  providing  the  attendance,  gas  and  other  expenses 
without  charge."  On  one  occasion  a  pianoforte  was  pur- 
chased from  the  profits  for  the  Institute.  This  is  "  the  body 
which  carries  on  all  the  recreative  and  educational  work  " 
at  Aylesbury.  The  three-story  house  on  Silver  Street  was 
bought  for  this  purpose  sixteen  years  ago.  It  has  a  read- 
ing-room and  a  lending  library  on  the  ground  floor :  the 
first  floor  is  given  up  to  billiards,  chess  and  cards,  and  the 
younger  members  use  the  second  floor  for  bagatelle  and 
minor  games.  A  lecture  hall  is  also  rented  on  Castle  Street, 
which  has  gymnastic  apparatus,  the  hall  being  much  in 
use  for  practice  by  the  brass  and  string  bands  (instruments 
are  provided  by  the  company),  and  for  classes,  lectures  and 
entertainments. 

A  recreation  ground  of  some  six  acres  provides  oppor- 
tunity for  cricket,  football,  tennis  and  quoits.  A  swimming 
class  for  girls,  a  singing  class  and  a  Shakespeare  class  have 
been  connected  with  the  Institute.  The  company  assisted 
its  work  to  the  extent  of  some  £76  in  1897.  Five  acres 
of  land  adjoining  the  recreation  ground  are  let  to  fifty-two 
tenants  for  gardens.  The  annual  rent  is  nine  pence  per 
pole  ;  this  includes  fencing,  water  taxes  and  other  expenses. 
The  land  is  building  land,  worth  £220  an  acre,  and  the 
rent  pays  a  very  small  interest  on  this.  The  nearness  to 
the  works  and  the  fertility  of  the  soil  make  the  privilege 
valuable  to  the  employees.  The  company  made  an  experi- 
ment in  buUding  six  cottages  of  a  better  kind  than  the  ordi- 
nary, but  did  not  find  encouragement  to  continue  the  plan. 

The  Kirby  Street  Institute  does  a  more  modest  work  than 


BRITISH  EMPLOYERS'  INSTITUTIONS     187 

the  one  at  Aylesbury.  The  company  encourages  its  appren- 
tices to  acquire  a  good  technical  knowledge  of  their  busi- 
ness, by  allowing  them  to  attend,  in  business  hours,  classes 
conducted  by  certain  technical  institutions  in  London,  they 
being  paid  as  if  still  at  work.  Attendance  on  evening 
classes  is  also  encouraged.  An  apprentice  who  conducts 
himself  well  will  receive  a  bonus  of  £10  on  the  expiration 
of  his  term ;  £2  2s.  of  this  sum  go  to  make  him  a  life 
member  of  the  Printer's  Pension  Society :  it  is  expected 
that  the  apprentice  wiU  save  a  sum  equal  to  the  bonus. 
The  very  considerable  risk  of  fire  in  the  three  presses  is 
met  by  three  voluntary  fire  brigades :  each  has  its  summer 
outing  as  the  guest  of  the  firm. 

The  proprietors  of  The  Graphic  and  Daily  Graphic, 
of  London,  instituted  in  1891  a  Thrift  Fund,  contribution 
to  which  has  been  obligatory  for  all  employees  on  weekly 
wages  beginning  since  January  1,  1892,  but  optional  for 
others.  The  contributor  determines  each  week  the  size  of 
his  contribution,  but  he  must  pay  in  not  less  than  2^  per 
cent,  of  his  earnings,  nor  more  than  5  per  cent. ;  if  his 
earnings  exceed  £4  a  week,  only  that  sum  shall  be  the  basis 
of  his  contribution.  Three  per  cent,  compound  interest 
shall  be  paid,  together  with  the  principal,  to  any  contributor 
leaving  the  service  of  the  company.  Otherwise  the  principal 
shall  remain  in  the  hands  of  the  company  until  his  death 
while  in  their  employ,  or  until  he  is  incapacitated  for  work, 
or  until  he  is  fifty-five  years  of  age  or  more,  after  contribut- 
ing ten  years  at  least.  Under  any  of  these  conditions  the 
company  adds  50  per  cent,  to  the  amount  subscribed,  and 
the  contributor  or  his  representative  shall  also  receive  3 
per  cent,  compound  interest  on  the  entire  amount.  If  a 
contributor  desires  to  withdraw  any  sum,  after  having  con- 
tributed five  years,  he  can  do  so,  according  to  a  sliding 
scale :  but  the  company  will  add  only  25  per  cent,  to  the 
contributions.  The  directors  reserve  the  right  to  modify 
or  abolish  the  scheme,  if  desirable,  and  also  to  close  any 
man's  account,  if  it   should   appear  to   them   necessary ; 


188  A   DIVIDEND   TO  LABOR 

but  his  claims  shall  be  as  great  as  if  his  contributions  had 
remained  the  required  time.  The  scheme  has  been  very 
successful.  The  fund  had  to  its  credit,  December  31, 
1898,  including  contributions,  donations  and  interest, 
£14,503  3s.  Id. 

The  delegates  of  the  Clarendon  Press,  Oxford,  built 
in  1893  an  institute  for  their  employees  at  an  expense  of 
£5,000.  It  contains  a  large  central  hall,  which  was  to  be 
used  as  a  gymnasium,  or  for  entertainments  and  meetings, 
and  rooms  for  reading  and  study  and  recreation.  There 
are  special  rooms  for  women  and  boys,  and  for  the  classes 
of  the  City  Technical  Instruction  Committee. 

Saltaire,  the  model  industrial  village  of  Yorkshire, 
was  founded  by  Sir  Titus  Salt,  the  famous  woolen 
manufacturer  and  philanthropist,  in  1853.  It  is  sit- 
uated three  miles  from  Bradford,  on  the  river  Aire. 
The  works  cover  ten  acres  of  ground,  and  they  were 
constructed  with  every  appliance  then  known  for  the 
comfort  of  the  3,000  to  4,000  operatives;  the  air  in 
the  mills,  for  instance,  was  cooled  in  summer,  as  well 
as  warmed  in  winter.  By  1877  there  had  been  built 
850  convenient  cottages,  and  45  almshouses  accormno- 
dating  75  pensioners,  on  26  acres  adjoining  the  works ; 
the  houses  erected  up  to  1867  had  cost  ,£106,000  (a 
man  with  a  wife  in  an  almshouse,  or  cottage,  received 
10s.  a  week,  and  a  single  person  7s.  6c?.,  beside  house 
rent). 

The  other  institutions  established  by  Sir  Titus  from 
time  to  time  included  a  fine  Congregational  church 
(sites  were  given  for  other  churches)  erected  at  an 
expense  of  X16,000  ;  an  infirmary ;  a  system  of  baths 
(24)  and  wash-houses,  costing  X7,000,  and  supplied 
with  machinery  for  laundry  purposes ;  a  public  park 
of  14  acres :  school  buildings  for  750  children,  erected 


BRITISH  EMPLOYERS'  INSTITUTIONS     189 

for  ,£7,000  in  1868  and  converted  into  secondary 
schools  in  1870,  when  Board  Schools  were  instituted ; 
a  dining-hall  where  meals  could  be  procured  at  cost  or 
less,  and  food  was  cooked  for  operatives  bringing  it ; 
and  the  Saltaire  Club  and  Institute,  a  £25,000  build- 
ing. This  contained  a  library  with  several  thousand 
volumes  ;  a  reading-room  7  a  lecture  and  concert  hall 
seating  800  persons ;  schools  of  art  and  science,  with 
class-rooms  and  a  laboratory ;  rooms  for  minor  games, 
billiards  and  smoking ;  an  armory  and  drill  -  room ; 
and  a  gymnasium.  The  fees  for  the  use  of  the  build- 
ing varied  from  two  shillings  to  six  pence  per  quarter. 
The  Institute  was  under  the  control  of  a  committee, 
eight  members  being  selected  by  the  firm  and  eight  by 
the  members  of  the  Literary  Institute.  A  boat-house 
and  a  cricket  ground  further  provided  for  physical 
culture,  and  a  great  variety  of  organizations  —  ath- 
letic, social,  musical,  educational  and  benevolent  — 
came  into  existence.  Pensions  were  given  to  em- 
ployees who  were  maimed  for  life.  Public  houses  were 
not  allowed  in  the  place.^ 

James  Smieton  and  Sons  are  manufacturers  of  jute 
at  Carnoustie,  near  Dundee,  Scotland.  Since  1858  they  have 
erected,  less  than  half  a  mile  from  the  factory,  eighty-nine 
model  dwellings  which  are  fully  described  by  Dr.  Gould 
("  Report,"  pp.  340-^42).  In  addition  to  a  lawn  in  the 
rear  of  each  house,  about  1,500  feet  of  land  are  set  apart 
for  each  family,  next  to  the  house  or  in  the  vicinity,  for 

1  Saltaire  long  enjoyed  a  fame  similar  to  that  of  Pullman,  Illinois, 
in  later  years :  but  its  institutions  are  reported  to  have  gradnally 
fallen  into  neglect  since  the  death  of  Sir  Titus  Salt  in  1877.  Rev. 
R.  Balgamie  in  his  biography,  dated  in  that  year,  speaks  of  the  In- 
stitute as  destined  to  change  into  "higher  grade  schools."  Informa- 
tion is  difficult  to  procure.  See  Harper^s  Magazine  for  May,  1872. 
Saltaire  had  at  least  twenty-four  years  of  prosperity. 


190  A  DIVIDEND   TO  LABOR 

vegetable  and  flower  gardens,  for  which  no  charge  is  made. 
About  12  per  cent.,  on  the  average,  of  the  tenant's  wages 
go  for  rent :  for  similar  lodgings,  not  owned  by  the  firm,  he 
would  probably  pay  about  half  as  much  again.  The  firm 
estimates  its  net  income  at  3  per  cent.  A  "  People's  Palace," 
opened  in  1865  and  costing  £1,756,  contains  a  reading- 
room,  a  library  (1,300  volumes),  an  entertainment  hall  seat- 
ing 600  persons,  and  a  billiarH  room :  the  cost  of  mainte- 
nance is  about  £32  a  year.  No  charge  is  made  for  the  use 
of  the  building  and  its  privileges,  but  the  expense  of  daily 
papers  and  periodicals  is  divided  equally  between  the  mem- 
bers and  the  proprietors.  A  penny  savings-bank,  paying  no 
interest,  leads  up  to  the  post-office  savings-bank. 

From  the  "  Life  of  Samuel  Morley,"  by  Edwin  Hodder, 
I  make  the  following  extract  (p.  188).  Samuel  Morley, 
born  in  1809  and  dying  in  1886,  was  engaged  in  the  hosiery 
manufacture  at  Nottingham  and  Hackney  (London). 
"  For  the  benefit  of  the  workpeople  [about  1847,  no  date 
given  in  the  chapter]  a  most  beneficent  system  of  annuities 
was  instituted.  It  is  an  open  secret  that  Mr.  Morley's 
treatment  of  old  and  faithful  employees,  in  the  way  of  pen- 
sion and  allowance,  was  altogether  unprecedented  in  the 
annals  of  commercial  houses,  and  these  dispossessed  hand- 
knitters  [Mr.  Morley  had  substituted  machinery  in  place  of 
the  old  hand  looms]  were  the  people  who  had  the  first  con- 
sideration as  annuitants.  The  pension  scheme  was  sug- 
gested by  Mr.  Samuel  Morley,  and  for  many  years  he  went 
down  and  paid  the  first  installments  of  gifts  and  pensions 
to  the  old  hands.  The  cost  of  this  was  borne  by  the  firm, 
and  the  amount  paid  in  any  one  year  was  never  less  than 
£2,000.     The  system  still  remains  in  force." 

Thomas  Adams  &  Co.  are  large  lace-makers  in  Not- 
tingham. The  day  for  the  girls  in  their  factory  begins 
with  the  Church  of  England  service  read  in  the  chapel, 
which  seats  800,  by  one  of  the  three  chaplains  engaged  by 
the  firm.  The  half-hour  service  is  entirely  undenomina- 
tional.    "  We  find  that  the  service  brings  to  us  girls  of  a 


BRITISH  EMPLOYERS'  INSTITUTIONS     191 

very  high  character,"  says  one  of  the  firm.  "  Every  morn- 
ing, between  ten  and  eleven  o'clock,  a  tradesman  visits  the 
warehouse  with  refreshments.  The  girls  leave  their  coun- 
ters, and  refresh  themselves  in  a  large,  cool  room  with  a 
glass  of  milk  and  a  bun,  and  then  resume  their  work  till 
one  o'clock,  when  they  go  home  for  dinner,  returning  at  two. 
From  four  to  half-past  six,  they  go  down  to  the  tea-room,  in 
batches  of  about  seventy  at  a  time,  each  making  her  own 
tea  from  a  huge  boiler,  and  at  seven  o'clock  their  day's 
work  is  over."  ^ 

Thomas  Mason  and  Sons,  Ashton-under-Lyne, 
beside  paying  wages  above  the  trade-union  list  prices,  pro- 
vide for  their  workpeople  very  good  sanitary  houses.  They 
support  a  system  of  baths  (shower  and  swimming),  a  read- 
ing-room, a  lecture-room  (with  excellent  lectures),  a  gym- 
nasium and  a  bowling-green.  Prizes  are  offered  for  plant 
growing,  and  an  annual  flower  show  is  held  in  the  lecture- 
room. 

The  Cadbury  Brothers  are  well-known  manufac- 
turers of  cocoa  and  chocolate  at  Bournville,  seven 
miles  from  Birmingham.  The  sixty  acres  now  the  fac- 
tory property  were  formerly  a  country  seat,  Bournville 
Hall ;  the  works  are  said  to  absorb  one  third  of  all 
the  cocoa  imported  into  England.  Mr.  Richard  Cad- 
bury, the  head  of  the  firm,  died  in  Jerusalem  in  March 
of  the  present  year.  Birmingham  owes  to  him  a  great 
educational  institution  for  the  working  classes,  a  con- 
valescent home  for  children,  and  various  provisions  for 
the  aged ;  these  buildings  alone  are  valued  at  <£7 0,000. 

The  Cadbury  Brothers  employ  some  1,900  un- 
married women,  600  workmen  and  some  200  clerks. 
The  works  proper  occupy  a  site  of  ten  acres,  and  are 
connected  by  subways  and  bridges.  The  heavier  work 
is  apportioned  to  the  men :  men  and  women  do  not 

1  Home  Magazine  for  1898,  "  The  Girl-Workers  of  Britain,  VI." 


192  A   DIVIDEND   TO  LABOR 

work  together  in  any  department,  and  no  married 
women  are  employed.  The  result  of  this  regulation 
is  that  the  girls  in  the  Cadbury  works  marry  three 
years  later  than  the  average  in  the  country  adjacent, 
and  their  marriages  are  said  to  be  much  happier,  as 
a  rule,  than  the  usual  lot :  "  they  are  less  liable  to  be 
married  by  men  in  search  of  a  wife  to  support  them." 
•  The  Bournville  works  are  especially  noted  for  the 
kindly  manner  in  which  the  girls,  the  great  majority 
of  the  employees,  are  treated ;  only  ten  per  cent,  of 
them  come  from  Birmingham,  the  remainder  from  the 
surrounding  villages.  In  the  busiest  part  of  the  year, 
from  September  to  December,  the  hours  of  work  are 
from  6  A.  M.  to  5.30  p.  m.  (1  p.  m.  on  Wednesday,  and 
12.30  p.  M.  on  Saturday).  The  girl  arriving  so  early 
receives  a  cup  of  tea  and  a  tea  biscuit ;  she  is  allowed 
half  an  hour  for  breakfast,  fifteen  minutes  for  lunch, 
and  one  hour  for  dinner.  For  the  other  months  of  the 
year  the  hours  are  from  8.45  A.  m.  to  5.30  p.  M.,  — 
1.30  p.  M.  on  Saturdays.  The  girls,  in  the  morning, 
leave  their  shoes,  if  damp,  on  racks  in  the  cloak-room 
above  the  hot-water  pipes,  wearing  slippers  at  their 
work,  for  which  they  put  on  a  white  hohand  dress ; 
they  pay  two  thirds  of  the  cost  of  the  material,  and 
make  the  dresses  themselves :  these  must  be  clean  every 
Monday.  The  first  five  minutes  of  the  day  are  spent 
in  a  brief  devotional  service,  conducted  by  some  mem- 
ber of  the  firm,  who  makes  a  two-minute  address. 
Dinner  is  taken  in  a  great  hall  (used  also  for  lec- 
tures), divided  into  rooms  for  the  girls,  the  men,  the 
clerks  and  the  firm,  —  the  fare  provided  being  the 
same  for  all.  Food  brought  by  the  employees  wiU  be 
warmed  or  cooked  free  of  charge,  and  meals  may  be 


BRITISH  EMPLOYERS'  INSTITUTIONS     193 

taken  outside  of  the  dining-room.  The  kitchen  employs 
some  twenty  persons.  The  tariff  is  such  as  to  pay 
the  bare  cost  of  the  food,  other  expenses  being  borne 
by  the  firm.  Cold  meats  at  Id.  or  2d.  a  plate ;  eggs 
Id.  each ;  puddings,  pies,  and  tarts,  at  Id.;  tea  and 
coffee,  ^d.  per  three  quarters  pint,  mUk  Id.,  and  bread 
^d.  per  slice,  will  indicate  the  very  moderate  prices 
charged.  The  girls  now  bring  meat,  if  they  wish  it 
hot :  hot  joints  were  formerly  served,  but  the  practice 
was  given  up,  as  "  all  the  girls  wanted  the  best  cut." 
Fruit  is  liberally  supplied  the  year  round.  After  the 
meal  the  girls  are  free  to  scatter  over  the  eleven  acres 
of  ground  which  are  their  portion  of  the  old  estate, 
laid  out  in  paths,  shrubberies  and  playgrounds.  The 
men  have  a  range  of  the  same  size.  Five  gardeners 
keep  up  these  grounds,  which  are  open  to  workers  at 
all  times. 

The  girls'  pay  is  from  Is.  6d.  to  2s.  a  week  higher 
than  in  any  other  business  in  the  Midlands.  Two  dis- 
trict nurses  visit  sick  girls,  and  a  committee  of  fore- 
women give  out  tickets  once  a  week  for  hospitals,  etc. 
The  Hall  is  a  home  for  sixty  girls,  who  pay  six  shil- 
lings a  week  for  board  and  lodging :  the  Adnery  sup- 
plies grapes  for  the  sick-room,  —  1,200  bunches  were 
so  given  out  in  1897.  The  girls  are  remarkably 
healthy,  the  works  being  well  ventilated,  warmed  and 
lighted:  their  bicycles  are  numerous,  and  a  cycle- 
house  shelters  them.  In  the  diamond  jubilee  year  of 
the  Queen  the  Cadburys  deposited  in  the  post-office  a 
sovereign  for  each  girl  who  had  been  employed  three 
years,  and  a  half  sovereign  for  every  other.  Thus 
each  girl  has  a  savings  account  (increased  in  nine 
months  of  1897  by  £1,200)  ;  the  Cadburys  increase 


194  A  DIVIDEND   TO  LABOR 

the  interest  paid  by  the  postal  bank,  and  the  accounts 
are  so  managed  that  only  the  depositors  know  the 
size  of  their  accounts.  Fines  for  lateness  go  to  the 
hospital  Saturday  fund,  others  to  the  sick  club.  One 
object  of  this  club  is  "  to  provide  means  for  paying 
sums  weekly  to  members  who  are  compelled  to  absent 
themselves  from  work  in  consequence  of  infectious 
disease  in  their  families  :  "  a  clean  biU  of  health  must 
be  presented  by  any  worker  who  has  been  so  exposed, 
and  full  pay  is  assured  him  or  her  while  shut  out. 
The  Cadbury  works  have  the  usual  number,  at  least, 
of  special  organizations,  —  musical,  literary  and  other 
clubs,  and  technical  schools,  —  all  aided  morally  and 
materially  by  the  firm. 

Adjoining  the  factory  grounds  are  some  140  acres, 
which  are  gradually  being  laid  out  so  as  to  make  it 
"  easy  for  workingmen  to  own  houses  with  large  gar- 
dens, secure  from  the  danger  of  being  spoilt,  either  by 
the  building  of  factories  or  by  interference  with  the 
enjoyment  of  sunlight  and  air."  The  gardens  average 
about  one  sixth  of  an  acre,  and  the  size  of  the  house  is 
so  determined  that  the  garden  may  not  be  overshad- 
owed. The  land  is  leased  for  999  years  for  a  half- 
penny to  a  penny  a  yard,  ground  rent.  By  1893  there 
had  been  built  thirty-six  attractive  cottages,  "  which 
might  be  described  as  semi-detached  villas,"  each  hav- 
ing five  rooms  and  a  scullery  ;  the  rent  is  five  shillings 
to  six  shillings  a  week.  The  Cadburys  wiU  advance  up 
to  X20,000  on  mortgages  at  2i  per  cent,  to  those  who 
wish  to  build,  and  can  pay  one  fifth  of  the  cost  in 
cash.  This  building  plan  is  open  to  any  one,  whether 
an  employee  or  not,  who  can  repay  the  loan  in  small 
installments.     No   person    can  own  more  than  four 


BRITISH  EMPLOYERS'  INSTITUTIONS     195 

houses.  Seven  acres  have  been  set  aside  as  a  recrea- 
tion ground,  smaller  plots  for  children's  playgrounds, 
and  for  schools,  baths  and  an  institute  —  all  to  be  in 
charge  of  a  committee  appointed  by  the  tenants.  No 
shops  (except  a  few  retail  ones  in  allotted  positions), 
factories  or  business  of  any  kind  wiU  be  allowed  on 
the  estate. 

It  is  not  strange  that  this  remarkable  combination 
of  business  ability  and  active  kindliness  has  produced 
the  happiest  results.  The  Cadbury  works  are  not 
disturbed  by  labor  troubles.  The  girls  are  a  very 
cheerful  and  contented  company :  the  country  folk  say 
that  they  can  easily  teU  a  Cadbury  girl,  —  "  She  sings 
hymns  at  the  wash-tub."  Nor  is  it  strange  that  visit- 
ors to  this  immense  factory,  surrounded  by  green 
fields,  shady  lanes  and  highly  cultivated  grounds,  call 
Bourn viUe  "  a  Worcestershire  Eden,"  and  speak  of 
its  women-workers  as  "the  luckiest  girls  in  the 
world." 

The  Fry  Brothers  of  Bristol  are  the  oldest  cocoa  firm 
in  the  world,  dating  back  to  1728.  They  now  employ  some 
2,000  workers,  of  whom  1,600  are  girls.  Their  work-hours 
are  from  eight  A.  M.  to  five  P.  M.,  with  intervals  for  meals. 
*'  One  of  the  floors  at  the  chief  factory  has  been  made  into 
a  huge  meeting-room,  and  here,  each  morning,  after  the 
girls  have  been  at  work  an  hour,  a  service  is  held  lasting 
about  twenty  minutes,  conducted  by  one  of  the  firm.  .  .  . 
Often  there  are  considerably  over  2,000  workers  present. 
The  employees  join  heartily  in  the  singing,  and  the  silence 
during  prayer  is  very  impressive.  [The  Frys  are  Quakers  : 
"  for  the  best  of  all  employers  commend  me  to  a  Quaker  "  is 
a  common  saying.]  A  short  gospel  address  is  given,  and  a 
chapter  read  from  each  of  the  Testaments,  and  then  the 
people  make  their  way  back  to  their  respective  rooms.    Pro- 


196  A  DIVIDEND  TO  LABOR 

vision  is  made  for  the  girls  to  have  dinner  inside  the  works, 
and  at  night  various  classes  are  held  on  the  premises,  at 
which  the  girls  learn  sewing,  cookery,  and  receive  instruc- 
tion in  all  manner  o£  subjects  likely  to  be  helpful  to  them."  ^ 

Tangyes,  Limited,  engineers  of  Birmingham,  employ 
some  3,000  men  in  the  great  Cornwall  works.  From  their 
penny  pamphlet  describing  their  numerous  institutions  for 
their  employees  I  take  these  particulars.  Science  classes  in 
connection  with  the  Birmingham  and  Midland  Institute,  in 
mathematics,  geometry  and  machine  di'awing,  are  open  to 
employees  only.  The  company  pays  a  considerable  part  of 
the  instructors'  salary  ;  the  fee  is  from  two  shillings  six  pence 
to  five  shillings  per  term.  Lectures  on  subjects  suggested 
often  by  the  men  have  been  given  on  Tuesdays  and  Thurs- 
days throughout  the  year.  The  addresses  are  delivered  in 
the  messroom  during  the  last  half  of  the  dinner-hour,  while 
the  men  smoke,  and  "  have  always  been  very  much  appreci- 
ated by  large  and  attentive  audiences."  The  messroom  or 
dining-hall  accommodates  1,000  persons ;  with  the  kitchen 
attached,  it  is  rented  to  a  contractor  who  provides  meats, 
pies,  puddings  and  drinks  at  a  low  rate.  For  every  person 
using  the  room  the  contractor  may  receive  one  penny  a 
week,  in  return  for  which  he  warms  food  and  supplies  hot 
water  for  making  tea  and  coffee.  Dinner  is  provided  free 
for  some  sixty  chief  clerks  and  managers. 

A  Sunday-school  is  held  at  the  works  at  eight  o'clock 
Sunday  morning  ;  the  teachers  meet  half  an  hour  eai'lier  for 
breakfast.  Reading  and  writing  are  taught  and  Scripture 
lessons  given  (to  325  scholars  in  1884).  In  connection  with 
the  school  there  is  a  lending  library  (800  volumes),  the  fee 
being  one  halfpenny  a  week,  which  covers  the  school  ex- 
penses and  provides  new  books ;  a  savings  fund,  allowing 
interest  on  deposits ;  a  sick  fund,  with  a  subscription  of 
two  pence  a  week,  —  the  benefit  being  6s.  per  week  for  26 
weeks,  and  3s.  a  week  for  a  further  26  weeks.     On   the 

1  "  The  Girl  Workers  of  Britain,  No.  VII."  in  the  Home  Magazine 
of  London  for  1898. 


BRITISH  EMPLOYERS'  INSTITUTIONS     197 

death  of  a  member  a  levy  contributes  £3,  or  of  his  wife  £2, 
or  of  a  child  £1.  The  balance  in  hand  at  the  end  of  a 
year  is  divided  among  the  members. 

A  meeting  for  worship  is  held  Sunday  evening,  and  a 
temperance  meeting  every  Saturday  afternoon,  with  an 
average  attendance  of  500  persons.  A  dispensary  was  built 
and  equipped  by  the  firm ;  it  is  managed  by  a  surgeon  and 
a  dispenser,  whose  services  are  confined  to  the  workpeople 
and  their  families ;  4,636  members,  in  1884,  contributed 
for  medicines  and  medical  attendance  almost  enough  to 
cover  the  cost  of  maintenance.  Each  person  engaged  in 
the  works  and  his  wife  pay  As.  per  annum,  and  for  each 
child  2s.  6c?.,  the  maximum  charge  for  a  family  being  18s. ; 
the  payments  are  deducted  from  wages.  A  sick-visitor 
devotes  his  whole  time  to  his  work.  The  "  Cornwall  Works 
Provident  Sick  Society  "  is  managed  by  the  usual  officers 
(from  the  firm  or  the  counting-room)  and  twenty-one  com- 
mitteemen from  the  various  departments.  The  members 
are  divided  into  three  classes  according  to  their  wages. 


Class. 

Rate 

of  Wages 

per  Week. 

Contribu- 
tion per 
Fortnight. 

Sick 

Benefit 

per  Week. 

Death 

of 
Member. 

Death  of 

Member's 
Wife. 

Death  of 

Member's 

Child  if 

under  14. 

A 
B 
C 

under  8/- 

"    15/- 

15/  -  &  over 

2d. 
3d. 
6d. 

3/- 
4/6 
9/- 

£1  13  0 
£2  10  0 
£5    0  0 

£2  10  "6 

£1   o"6 

Id. 

2d. 
4d. 

Sick  or  disabled  members  may  receive  13  weeks'  full  pay 
and  26  weeks'  half  pay ;  a  contribution  of  Id.  a  week  wiU 
continue  membership  during  the  rest  of  their  illness.  A 
Foremen's  Trust  Fund  was  established  in  1878  with  a  gift 
of  £2,000 :  it  gives  a  weekly  payment  in  cases  of  illness 
and  £100  in  case  of  death.  Every  employee  who  is  a  mem- 
ber of  a  provident  society  may  enjoy  the  benefits  of  an  acci- 
dent fund,  which  pays  in  case  of  disablement  from  5s.  to 
15s.  per  week,  and  in  case  of  death  from  £25  to  £100  ac- 
cording to  wages. 


198  A  DIVIDEND  TO  LABOR 

The  issue  of  bonds  of  £50  to  some  of  the  older  work- 
people (described  in  my  "  Profit  Sharing,"  p.  286)  was  dis- 
continued after  some  years  subsequent  to  1883  in  favor  of 
other  methods.  The  Tangyes  men  support  a  choral  society, 
and  a  Saturday  collection  for  the  hospital,  generally  a  penny 
a  week  from  each  man.  "  On  the  last  Saturday  of  the  hos- 
pital year  the  men  work  one  hour  over  time,  devoting  the 
proceeds  to  the  fund." 

At  the  Elswick  Works,  Newcastle-upon-Tyne, 
the  great  firm  of  Sir  W.  G.  Armstrong,  Whitworth  & 
Co.  have  an  "  employes  deposit  fund,"  which  receives 
deposits  of  not  less  than  one  shilling  nor  more  than 
one  poimd  a  week :  officials  paid  quarterly  may  de- 
posit not  more  than  two  pounds  in  one  week,  the  limit 
for  them  being  X400,  and  for  employees  paid  weekly 
.£200.  Four  per  cent,  interest  is  added  to  each  ac- 
count semi-annually,  and  a  bonus  "  equal  to  half  the 
difference  between  the  fixed  rate  of  four  per  cent.,  and 
the  dividend  payable  on  the  shares  of  the  company." 
The  company  does  not  express  itself  on  the  workings 
of  this  scheme,  as  it  has  not  been  long  in  operation 
here.  The  company  has  both  ordinary  and  "pre- 
mium "  apprentices,  the  latter  having  opportunity  to 
learn  the  business  in  a  variety  of  departments.  For 
the  last  half  century  there  have  been  connected  with 
the  Elswick  works  a  Mechanics'  Institute,  a  day  school 
with  a  science  class,  and  a  night  school,  mainly  for 
apprentices,  with  classes  in  mathematics  and  natural 
science  :  these  have  enjoyed  the  patronage  of  the  heads 
of  the  concern  and  have  had  very  excellent  results.^ 

^  Professor  Paul  Bureau,  author  of  a  prize  essay  on  Pai-tidpation 
aux  Bdn^fices  written  in  1895,  reports  that  "  in  the  important  gun 
foundry  now  under  the  direction  of  the  son  of  the  great  employer 
philanthropist,  Sir  Joseph  Whitworth,  each  workman,  with  the  ex- 


BRITISH  EMPLOYERS'  INSTITUTIONS     199 

Several  English  railways  have  relief  departments 
for  the  benefit  of  employees.  The  Midland  Com- 
pany is  reported  to  have  contributed  in  1898  to  the 
superannuation  fund  of  the  salaried  staff,  £16,643, 
and  to  the  funds  of  the  workmen's  friendly  society, 
X16,678.  The  London  and  Northwestern  Com- 
pany established  in  1877  its  "  Insurance  Society," 
which  provides  "  pecuniary  relief  in  cases  of  tempo- 
rary or  permanent  disablement  while  in  the  discharge 
of  duty,  and  in  aU  cases  of  death."  The  contributions 
are  one  penny  a  week  from  boys,  and  others  with  wages 
under  twelve  shilhngs  a  week,  two  pence  from  porters, 
and  three  pence  from  passenger  guards  and  brakemen. 
In  case  of  members  who  agree  beforehand  "  to  accept 
the  contribution  to  the  funds  of  the  society"  by  the 
company  in  full  of  all  claims,  the  payments  made 
by  the  trustees  (the  chairman,  deputy  chairman  and 
secretaiy  of  the  company)  are  from  two  to  three  times 
as  large  as  in  the  case  of  those  who  do  not  so  agree. 
For  guards  and  brakemen,  for  instance,  the  payments 
are,  in  case  of  death  by  accident  while  in  service,  <£100 
or  .£40  :  for  permanent  disabihty,  XlOO  or  £35  :  for 
temporary  disabihty,  21s.  a  week,  or  18s. :  for  death 

ception  of  the  upper  overseers  of  each  shop,  may  deposit  with  the 
house  any  sum  at  the  rate  of  a  pound  sterling  a  week.  These  de- 
posits receive  a  dividend  equal  to  that  on  shares,  and  even  in  bad 
years  five  per  cent,  interest:  they  can  be  withdrawn  at  will,  after 
notice.  '  About  one  third  of  the  workmen,'  Mr.  J.  Whitworth  tells 
me,  '  have  profited  by  this  opportunity  :  at  present  more  than  £20,000 
sterling  have  been  thus  deposited  and  some  have  more  than  5,000  fr. 
The  system  has  been  in  operation  more  than  twenty-five  years;  it 
g^ves  us  the  best  results.  .  .  .  We  have  succeeded  in  attaching  to  our 
works  an  important  group  of  very  honorable  workmen,  of  a  social 
level  above  the  average.'  "  The  Whitworth  firm  has  since  been  com- 
bined with  the  Armstrong  company,  and  the  latter's  method  seems 
to  be  a  modification  of  that  reported  by  M.  Bureau. 


200  A   DIVIDEND   TO  LABOR 

from  any  cause  not  provided  for  in  the  rules,  £10  in 
case  of  service  or  not.  The  number  of  members  of  the 
Insurance  Society,  December  31, 1893,  was  44,439 :  in 
that  year  there  were  seventy  deaths  from  accidents 
on  duty  for  which  the  society  paid  <£5,029,  and  431 
deaths  from  other  causes  for  which  the  payments 
were  .£4,246  :  for  permanent  disablement  £6,985  were 
disbursed :  for  temporary  disablement,  £20,328.  The 
total  receipts  of  the  society  to  December  31,  1893, 
were  £535,369,  of  which  the  members  paid  £322,964, 
and  the  company  £200,396. 

The  Provident  and  Pension  Society,  established  in 
1889,  provides  weekly  allowances  in  case  of  temporary 
disablement,  retiring  gratuities  for  old  or  disabled 
members  in  certain  cases,  death  allowances,  allow- 
ances toward  the  funeral  expenses  of  a  member's  wife 
and  pensions  to  the  old  or  disabled.  Membership  is 
compulsory,  with  three  classes,  members  of  the  first 
and  second  classes  paying  one  penny  a  week.  The 
company  contributes  for  pension  benefits  £3,000  a 
year  until  the  first  and  second  class  contributions 
amount  to  this  sum,  and  then  it  gives  an  amount 
equal  to  the  members'  contribution,  but  in  no  case 
more  than  £6,000  a  year.  The  company  in  hke  man- 
ner contributes  for  provident  benefits  £800  a  year,  in 
addition  to  the  fines.  The  management  in  general  is 
the  same  as  that  of  the  Insurance  Society.  Pensions, 
payable  after  sixty-five  years  of  age  and  twenty  years' 
contribution,  are  12s.  or  9s.  a  week :  disability  pay- 
ments, 12s.  or  6s.  :  the  payment  on  death  of  a  wife  is 
£5 :  retiring  gratuities  range  from  £6  5s.  to  £50. 
The  society's  report  for  1893  gave  the  number  of 
members  as  34,280,  the  receipts  as  £46,963  (from 
the  company  £6,683)  and  expenditures  as  £37,686. 


BRITISH  EMPLOYERS'  INSTITUTIONS     201 

The  London,  Brighton  and  South  Coast  Bail- 
way  Company  has  two  relief  departments  —  the 
"superannuation  fund"  and  " railway  servants'  insur- 
ance "  —  corresponding  generally  to  the  departments 
of  life  insurance  and  pensions  in  other  companies; 
but  the  system  appears  to  be  compulsory ,i  and  the 
allowances  in  case  of  death  or  superannuation  are 
different,  and  the  premiums  and  contributions  are 
larger  in  the  ratio  of  larger  hfe  insurance  and  weekly 
allowances.  All  officers  and  other  regular  employees 
not  over  forty  years  of  age  must  be  contributors  to 
the  superannuation  fund.  If  a  contributor  has  been 
ten  years  in  the  employ  of  the  company,  he  can  retire 
at  sixty  upon  an  allowance  of  twenty-five  per  cent, 
of  his  average  salary :  for  each  year  of  contribution 
above  ten,  one  per  cent,  is  added  up  to  the  maxi- 
mum, after  thirty-five  years'  contribution,  of  fifty  per 
cent.  The  contribution  is  2^  per  cent,  on  the  sal- 
ary earned ;  the  company  contributes  an  equal  sum. 
The  applicant  for  admission  to  the  "  railway  servants' 
insurance  "  signs  a  form  varying,  according  to  five 
classes,  from  first  class  (a),  carrying  a  hfe  insurance 
of  c£300  and  a  weekly  allowance  of  20s.  in  case  of 
injury  (premium  Is.  Qd.  every  two  months),  to  class 
No.  3,  with  XlOO  insurance,  10s.  allowance,  and  Qd. 
premium.  He  releases  the  company  from  all  other 
claims  in  case  of  injury  or  death.^ 

The  Great  Western  Railway  maintains  at   Swin- 

^  "  Forty  laxge  indnsixial  undertakings,  including  the  Midland  Rail- 
way Company,  make  compulsory  insurance  in  employers'  own  benefit 
societies,  the  premiums  being  peremptorily  deducted  from  wages." 
Industrial  Democracy,  by  Sydney  and  Beatrice  Webb,  vol.  ii.  p.  551. 

^  See  for  fuller  details  concerning  the  Northwestern  and  Brighton 
railways,  Bailways  and  their  Employees,  by  O.  D.  Ashley,  pp.  80-90. 


202  A  DIVIDEND   TO  LABOR 

don, Wilts,  its  locomotive  works,  its  central  works  for 
the  construction  of  carriages  and  wagons,  its  mills  for 
producing  "  merchant  iron,"  and  its  foundries,  all  of 
which  cover,  with  the  yards,  208  acres.  In  all  kinds 
of  construction,  fitting  and  repairs,  it  employed,  in 
March,  1898,  11,898  persons,  with  300  more  in  the 
traffic  and  permanent  way  departments.  The  company 
subscribes  directly  to  thje  Great  Western  Kailway  Me- 
chanics' Institution,  which  had  7,810  members  on 
March  31,  1899 ;  its  library  contains  20,750  volumes, 
including  a  reference  library ;  in  the  reading-room 
seventy-nine  copies  of  various  daily  newspapers  are 
taken,  in  addition  to  those  procured  for  the  smoking- 
room,  and  the  ladies'  reading-room,  and  many  weekly 
papers  and  magazines.  The  building  also  contains  a 
large  hall,  a  lecture  hall  (where  a  series  of  popular  lec- 
tures was  given  in  1898-99,  with  an  average  attend- 
ance of  650  persons) ;  a  recreation-room ;  a  billiard- 
room  ;  a  chess  and  draughts  room,  and  a  chorus-room, 
for  the  choral  and  orchestral  union,  which  last  season 
produced  "  The  Messiah  "  and  "  Elijah."  A  dancing 
class  is  held,  and  at  the  annual  juvenile  fete  in 
August,  1898,  13,468  adults  and  10,952  children 
paid  the  admission  fee.  The  annual  trip  at  the  ex- 
pense of  the  company  is  taken  in  excursion  trains  to 
any  station  on  the  lines,  the  members  returning  the 
next  week.  Magic  lantern  entertainments  for  school 
children,  and  other  items,  brought  up  the  total  ex- 
penses of  the  institution,  as  stated  in  its  fifty-fifth 
annual  report  for  the  year  ending  March  31,  1899, 
to  £3,093  Is.  Id.  The  company  subscribes  to  the 
mutual  assurance  and  sick  fund  societies.  The  fifty- 
second  report  of  the  medical  fund  society,  for  the  year 


BRITISH  EMPLOYERS'  INSTITUTIONS     203 

1898,  states  that  there  were  12,142  members.  It 
speaks  of  the  hospital  and  dispensary  (built  by  the 
company)  ;  the  washing  baths,  used  by  33,020  persons 
in  1898,  with  an  income  of  X403  16s.  Qd. ;  the  Turk- 
ish baths,  used  by  1,683  persons,  with  fees  paid 
amounting  to  <£51  13s.  Qd.;  the  swimming  baths,  used 
by  25,231  persons  (exclusive  of  Board  School  chil- 
dren), who  paid  £198  5s.  5d.  as  fees  (the  bath  sys- 
tem is  aided  by  the  company)  ;  the  accident  hospital ; 
and  the  nineteen  hospitals  in  London  and  elsewhere, 
to  which  letters  were  given  to  sick  members ;  the 
members  contributed  £8,510  Is.  4:d.  The  sick  fund 
society  of  the  Great  Western  Railway  locomotive  and 
carriage  departments,  in  its  fifty-fifth  report  for  1898, 
gave  the  number  of  members  as  10,968  ;  the  income 
from  them  as  £7,824,  with  £369  as  interest  received ; 
it  expended  for  superannuation  benefit,  £569;  for 
sick  benefit,  £5,431,  and  for  funeral  benefit,  £920  ; 
its  balance  was  £11,335.  The  company  has  provided 
at  Swindon  a  church,  a  recreation  park,  a  large  drill 
hall,  and  school  accommodation  for  some  800  children. 
England  is  notable  for  the  prevalence  of  that  ex- 
cellent institution  for  the  workman,  the  Saturday  half 
holiday.  Besides  the  stipulations  of  the  factory  laws, 
applying  to  women  and  young  persons,  which  pro- 
hibit work  after  12.30,  1  or  2  o'clock  p.  m.  according 
to  circumstances,  the  Early  Closing  Association  has 
done  much  in  this  direction  :  the  majority  of  its  vice- 
presidents  are  large  employers.  Early  closing  on 
Saturday  is  the  practice  of  some  hundreds  of  houses  in 
London,  and  is  more  general  outside  London :  Thurs- 
day is  sometimes,  as  at  Nottingham,  substituted  for 
Saturday,  for  local  reasons.     Payment  of  wages  on 


204  A  DIVIDEND   TO  LABOR 

Friday  is  a  natural  accompaniment  of  the  Saturday- 
half  holiday,  and  it  has  had  the  best  results,  in  respect 
to  increasing  temperance  and  otherwise.^ 

The  institutions  of  the  Scottish  Cooperative 
■Wholesale  Society,  at  Shieldhall,  near  Glasgow, 
show  what  workmen  wiU  do  for  themselves  where  the 
principles  of  cooperation  are  weU  understood.  The 
buildings  in  which  the  nineteen  branches  of  industry 
are  carried  on  are  of  model  construction.  "  The  rooms 
are  lofty,  spacious  and  well  ventilated.  They  are 
warmed  throughout  by  steam  and  Hghted  by  gas  and 
electricity.  The  best  sanitary  arrangements  are  every- 
where provided,  and  the  healthy  appearance  of  the 
workers  in  every  department  testifies  to  the  favorable 
conditions  under  which  they  perform  their  daUy  labor. 
Two  large  dining-rooms  are  provided  on  the  premises, 
one  for  each  sex,  capable  of  accommodating  at  one 
sitting  700  to  800  persons  :  and  in  close  proximity  to 
the  dining-rooms  there  are  also  two  large  reading- 
rooms,  provided  with  numerous  papers  and  periodicals, 
and  the  means  of  innocent  recreation.  Food  of  the 
best  quality,  and  well  cooked  in  a  series  of  large  gas 
stoves  in  a  spacious  cooking-room,  is  supplied  to  all  at 
cost  price.  .  .  .  The  full  recognized  standard  rates  of 
wages  are  paid,  while  the  hours  worked  in  some  de- 
partments are  two  and  a  half  per  week  less  than  they 
are  in  private  workshops.  .  .  .  Every  worker  in  the 
business,  from  the  youngest  to  the  oldest,  receives  on 
his  or  her  wages,  out  of  the  profits,  the  same  amount 
per  pound  as  the  shareholding  societies  receive  on  the 
amount  of  their  purchases."  ^    The  adult  workers  may 

^  See  The  Saturday  Half -Holiday,  by  Rev.  James  Yeames,  in  publi- 
cations of  the  Church  Social  Union,  No.  36. 
2  The  Leeds  Mercury. 


BRITISH  EMPLOYERS'  INSTITUTIONS     205 

become  shareholders  ;  in  1894  this  recent  arrange- 
ment had  allowed  166  employeecj  to  procure  shares  to 
the  amount  of  .£1,132,  on  which  5  per  cent,  interest 
is  paid  :  one  half  of  the  bonus  must  be  so  invested. 

Another  example  of  "  social  engineering "  is  af- 
forded by  the  United  Cooperative  Baking  Society 
of  Glasgow.  It  had  911  employees  in  1898,  occu- 
pied in  its  baking,  restaurant,  catering  ("  we  furnish 
everything  for  weddings  except  brides "),  farming 
(103  acres  in  one  piece  for  roses  and  other  flowers), 
and  building  departments.  The  employees  "  belong  to 
the  union  of  their  trade,  if  there  is  one  ;  "  the  bakers 
working  fifty  hours  a  week  "get  one  shilling  more 
than  trade-union  wages,  and  their  bonus  in  addition." 
The  society,  which  is  a  federation  of  societies,  has 
always  shared  profits  with  its  workmen,  and  seven 
years  ago  it  gave  them  a  voice  in  the  management. 
A  Bonus  Investment  Society  was  formed  of  the 
employees  who  wished  to  become  stockholders :  this 
society  represents  the  employees  at  general  meetings 
of  the  Baking  Society.  Employees  cannot  become 
members  of  the  managing  committee  or  officials,  but 
a  joint  committee  on  educational  work  (three  direc- 
tors and  three  employees)  supervise  the  gospel  meet- 
ings, the  two  swimming  clubs  for  men  and  women, 
the  women's  guild,  the  literary  and  music  classes,  the 
di'aughts  club,  the  Bonus  Investment  Society,  the 
physical  drill,  the  ambulance  class  and  the  fire  bri- 
gade. The  women  employees  are  given  the  dresses 
they  wear  at  work,  and  the  rooms  are  artificially  cooled 
for  their  benefit.^ 

1  See  Labor  Copartnership,  by  H.  D.  Lloyd,  p.  311. 


CHAPTER  VIII 

AMERICAN    LIBERALITY    TO   WORKMEN 

Paternalism  is  not  a  word  or  a  thing  acceptable  to 
the  American  workingman.  He  very  properly  desires 
to  be  his  own  master  outside  of  work-hours,  and  he  is 
quick  to  resent  any  manifestation  of  the  patriarchal  or 
patronizing  spirit  in  his  employer.  The  same  demo- 
cratic feehng,  nevertheless,  logically  welcomes  the  evi- 
dences of  a  disposition  on  the  employer's  part  to  treat 
his  employees  with  natural  kindness  and  unpatronizing 
generosity.  When  he  founds  institutions  for  their 
benefit,  they  should  have  the  chief  part  in  the  admin- 
istration of  them  —  this  is  the  essential  matter,  as  we 
shall  see.  Further  preface  to  an  account  of  what 
some  American  employers  are  doing  seems  to  be  here 
unnecessary. 

One  of  the  most  remarkable  factories  anywhere  to 
be  found,  by  general  confession  of  those  who  have 
seen  it,  whether  home  or  foreign  observers,  is  the 
American  Walthara  "Watch  Factory,  at  "Waltham, 
Mass.  In  the  same  prosperous  town  that  saw  the 
first  fully  developed  cotton-mill  in  which  all  the  pro- 
cesses of  the  industry  are  carried  on  under  one  roof, 
the  "  American  method "  of  making  watches  by 
machinery  has  been  carried  to  its  present  astonishing 
state  of  perfection  (if  perfection  be  possible  in  this 
world).  The  1,900  workers  who  perform  the  3,750 
distinct  processes  required  in  making  a  stem-winding 


AMERICAN  LIBERALITY  TO    WORKMEN     207 

watch  are  nearly  all  American  by  birth,  and  most  of 
them  are  of  New  England  lineage.  It  is  not  likely 
that  the  noted  factory  girls  of  Lowell  in  the  first  third 
of  this  century,  who  contributed  to  the  "  Offering,"  had 
a  higher  average  level  of  inteUigence  than  the  young 
women  in  this  watch  factory.  As  one  notices  at  noon 
or  evening  the  great  company  of  workers  leaving  the 
factory,  he  sees  such  a  crowd  as  comes  out  from  a 
concert  or  a  lecture  in  a  New  England  town.  Only 
their  dress,  which  is  that  of  every-day  for  sensible 
persons  who  adapt  their  array  to  their  duties,  indi- 
cates that  this  is  a  multitude  of  workers  who  have 
just  dropped  their  tools  or  quitted  wonder-working 
machinery,  instead  of  a  thi'ong  who  have  been  enjoy- 
ing leisure  in  a  refined  way.  No  large  company  of 
operatives  in  this  country  is  superior  in  intelligence 
and  character,  and  it  is  doubtful  if  any  other  is  quite 
equal —  all  things  considered. 

The  relations  between  these  exceptionally  intelli- 
gent and  independent  workers  and  the  corporation 
which  employs  them  have  always  been  friendly :  no 
strike  has  occurred  since  the  establishment  of  the 
works  in  1853.  Wages  are  liberal  as  compared  with 
those  paid  in  other  industries,  and  the  company  has, 
from  the  beginning,  shown  a  sincere  desire  to  attach 
its  employees  to  the  factory  by  following  a  generous 
pohcy  in  all  its  dealings  with  them.  It  has,  for  in- 
stance, steadily  encouraged  the  married  workers  to 
become  owners  of  homes.  It  early  purchased  a  large 
tract  of  land  adjoining  the  factory  (which  backs  upon 
the  Charles  River)  ;  two  smaU  parks  face  the  factory, 
and  another  has  been  reserved  at  a  distance.  It  sold 
lots  to  employees  at  low  prices,  often  aiding  them  to 


208  A  DIVIDEND  TO  LABOR 

build  with  loans  and  other  assistance,  and  the  steady- 
employment  it  has  given  has  been  one  of  the  best 
guarantees  of  safety  to  the  would-be  builder.  The 
company  has  also  built  many  houses  itself  and  either 
sold  them  on  easy  terms  to  its  workers,  or  rented 
them  at  low  rates :  they  are  probably  the  best  homes 
for  workers  in  the  country.  The  result  is  that  over 
one  fourth  of  the  married  employees  own  their  homes  ; 
the  proportion  is  increasing  year  by  year.  A  coopera- 
tive loan  association  has  aided  this  good  tendency. 

The  company  provides  a  large  boarding-house  where 
"  150  of  the  young  women,  a  very  few  married  couples, 
and  half  a  dozen  bachelors  "  were  found  boarding  by 
Mr.  John  Swinton  in  1887.1  The  "  Adams  House,"  as 
it  is  called,  charges  only  three  dollars  a  week  for  board 
and  lodging,  two  young  women  occupying  one  room. 
This  price  "  influences,  if  it  does  not  always  fix,  the 
terms  at  other  boarding-houses  in  the  city  for  female 
operatives."  The  company  desires  to  see  only  an 
equality  of  income  and  expense  in  running  the  Adams 
House.  At  the  men's  boarding-house  (the  Shawmut 
House)  the  company's  only  authority  is  in  fixing  the 
rates:  men  are  charged  84.50  per  week  (two  in  a 
room) ;  the  married  men  pay  $3  for  their  wives' 
board.  The  "  mealers,"  who  lodge  outside,  are  numer- 
ous at  both  houses.  The  fare  in  both  places  is  abun- 
dant and  varied  for  the  price  paid,  and  the  social  life  of 
the  Adams  House,  in  particular,  is  animated  and  recre- 
ative, as  might  be  expected  from  the  high  standing 
of  the  boarders  among  working  people.     Mr.  Swinton 

^  See  Mr.  Swinton's  valuable  "social  study"  entitled,  A  Model 
Factory  in  a  Model  City.  Mr.  Swinton  spent  a  week  at  this  house 
while  making  a  thorough  investigation  of  the  factory. 


AMERICAN  LIBERALITY  TO   WORKMEN     209 

was  introduced  to  one  of  the  foremen  in  the  factory 
as  Mayor  Fisher,  and  he  met  immediately  after  four 
aldermen,  a  deacon,  two  directors  of  the  pubhc  library, 
the  chief  of  the  city  fire  department,  several  militia 
officers,  and  a  member  of  the  factory  brass  band  (one 
of  the  best  in  the  State)  —  all  employees.  Quite  a 
number  of  the  workmen  and  workwomen  are  stock- 
holders in  the  company,  as  well  as  owners  of  their 
homes.  Drunkenness  is  almost  entirely  unknown 
among  the  men  of  the  factory. 

The  company,  being  naturally  desirous  of  keeping 
up  the  high  grade  of  its  employees,  carefully  respects 
their  independence.  ("  You  won't  find  a  more  inde- 
pendent set  anywhere  in  creation,"  said  a  townsman 
to  Mr.  Swinton.)  No  condition  is  made  as  to  race  or 
birth,  precedent  to  employment :  the  employee  is  per- 
fectly free  to  join  any  labor  organization  that  he 
pleases ;  and  the  privileges  already  mentioned  are 
offered  to  the  employee,  not  forced  upon  him.  There 
is  no  permanent  committee  of  conciliation,  as  in  Euro- 
pean factories  ;  but  any  aggrieved  individual  can  state 
his  grievance  to  the  president,  and  it  receives  immedi- 
ate consideration.  Where  a  number  of  persons  are 
concerned,  they  "  appoint  a  committee  to  present  their 
case,  experts  are  called  in,  the  foreman  of  the  depart- 
ment is  summoned,  and  the  matter  is  settled  in  joint 
conference,  somewhat  after  the  manner  of  an  arbi- 
tration board.  The  cases  of  moment  that  arise  are 
very  few,  not  more  than  three  or  four  in  a  year." 

The  Watch  Factory  Mutual  Relief  Association  had 
a  membership,  January  1, 1899,  of  1,033.  The  mem- 
ber pays  twenty-five  cents  a  month,  and  the  company 
contributes   $200    a  year.     A  bicycle   shed  yielded 


210  A  DIVIDEND  TO  LABOR 

1203.25  in  1898.  The  total  receipts  for  1898  were 
$3,138.75;  benefits  paid  were  $2,531,  and  the  bal- 
ance, January  1,  1899,  was  $1,772.87.  The  visiting 
committee  attends  to  sick  members,  who  may  draw 
four  dollars  a  week  for  ten  weeks  as  benefit  money : 
$50  is  paid  for  funeral  expenses:  the  work  of  the 
association  is  carried  on  in  the  factory  during  work- 
hours.  In  a  city  of  which  the  employees  in  the  watch 
factory  form  so  important  and  so  integral  a  part,  pro- 
vision for  their  intellectual  and  social  life  is  very 
wisely  left  by  the  company  to  the  conmmnity,  —  one 
of  the  most  intelligent,  temperate  and  thrifty  in  the 
State.  A  fine  public  library,  an  excellent  school  sys- 
tem (including  a  manual  training  school),  lecture 
courses,  musical  organizations,  and  the  higher  social 
entertainments  in  abundance  minister  to  the  intellec- 
tual and  social  needs  of  a  population  which  is  suburban 
to  Boston,  with  all  its  opportunities.  The  factory  has 
a  fortnight's  vacation  in  the  summer. 

This  great  establislmaent,  which  illustrates  in  a 
signal  manner  the  triumph  of  machinery  in  its  most 
delicate  applications  —  the  oldest  watch  factory  in  the 
country  and  the  largest  in  the  world,  —  sending  out 
watches  by  the  half  million  each  year,  shows  what  can 
be  done  materially  and  morally  to  make  the  relations 
of  employer  and  employee  permanent  and  kindly. 
The  vast  building  is  a  model  of  construction  and 
maintenance,  as  regards  light,  ventilation,  even  tem- 
perature and  general  cheerfulness  of  aspect :  the  social 
life  of  those  who  work  in  it  evinces  a  true  mutual 
esteem  and  a  sincere  cooperation,  without  any  altera- 
tion of  the  methods  of  the  existing  wages  system. 
The  treasurer,  Mr.  Bobbins,  believes  that  all  the  in- 


AMERICAN  LIBERALITY  TO  WORKMEN     211 

vestments  of  the  company  whicli  tend  to  make  the 
environment  of  the  worker  pleasant  —  the  parks,  the 
lawns  and  the  gardens  near  the  factory  —  pay  in 
many  ways.  Their  chief  value,  he  holds,  is  in  their 
moral  influence  upon  the  workpeople.  The  interest, 
as  well  as  the  obligation  and  the  pleasure  of  the  em- 
ployer, is  found  in  such  a  policy.  "  Anything  that 
tends  to  lighten  the  strain  of  labor  upon  the  mind,  or 
serves  to  promote  cheerfulness  and  contentment,  is  an 
economical  advantage.  In  short,  Mr.  Robbins  claims 
that  he  serves  his  company  best  when  he  secures  at 
any  expense  a  willing  and  contented  service  from  his 
employees." 

The  Elgin  Watch  Company  at  Elgin,  111.,  employ- 
ing some  2,000  persons,  keeps  up  a  hotel,  accommodating 
300  men  who  are  unmarried,  at  such  rates  as  make  it  no 
expense  to  the  corporation;  the  company  has  provided  a 
fine  gymnasium  for  the  whole  body  of  employees. 

Among  the  most  desirable  institutions  for  the  bene- 
fit of  workingmen  is  the  club-house  which,  indeed, 
groups  together  a  considerable  variety  of  institutions 
and  arrangements  under  one  roof,  after  the  manner 
of  a  Young  Men's  Christian  Association  or  Union. 
Especially  where  great  numbers  of  men  are  employed, 
as  in  iron  or  steel  works,  is  the  club-house  controlled 
by  the  workmen  themselves  an  excellent  institution. 
A  number  of  such  houses  are  now  to  be  found  in  the 
United  States.  The  pioneer  among  several  in  the  iron 
and  steel  industry,  and  the  one  with  the  most  fully 
developed  circle  of  activities,  is  the  Athenaeum  of  the 
Illinois  Steel  "Works  Club  at  Joliet.  Mr.  W.  E. 
Stirling,  of  Chicago,  then  a  director  in  the  company, 
was  active  in  establishing  this  model  institution,  which 


212  A  DIVIDEND  TO  LABOR 

was  brought  to  its  present  state  of  completeness  under 
the  superintendency  of  Mr.  Walter  Crane,  now  in 
charge  of  the  Carnegie  Club  at  Braddock,  Penn. 

The  Steel  Works  Club  of  Joliet  is  a  corporation, 
organized  under  the  laws  of  IlKnois,  December  14, 
1889 :  its  objects  are  stated  to  be  the  promotion  of 
"  healthful  recreation  and  social  intercourse  between 
its  members  "  and  the  affording  of  "  opportunities  for 
physical,  intellectual,  scientific  and  moral  culture." 
It  is  under  the  control  of  fifteen  directors,  seven 
elected  one  year  and  eight  the  next,  to  hold  office  for 
two  years,  with  the  usual  officials.  The  directors 
have  no  power  to  make  the  club  liable  for  any  debt 
beyond  the  income.  Any  employee  of  the  Illinois 
Steel  Company  (there  are  some  2,400  in  aU,  receiv- 
ing over  a  million  dollars  a  year  in  wages)  is  eligi- 
ble to  resident  membership :  there  are  also  honorary 
members.  The  membership  fee  is  two  dollars  a  year, 
payable  in  advance,  or  in  semi-annual  or  quarterly 
installments.  The  club  meets  regularly  four  times  a 
year,  and  the  directors  once  a  month.  The  provisions 
of  the  lease  of  the  Athenaeum  from  the  company  were 
adopted  as  a  part  of  the  regulations  of  the  club  :  one 
of  these  was  a  veto  power  on  the  action  of  the  direc- 
tors, but  there  has  never  been  an  occasion  for  exercis- 
ing this. 

The  Athenaeum  is  a  handsome  stone  building, 
located  near  the  works,  on  the  eastern  side  of  Joliet. 
It  was  erected  by  the  company  in  1889  at  an  expense 
of  $53,000.  It  contains  a  gymnasium  (45  x  45  ft.), 
a  hand-ball  court  (32  x  32  ft.),  baths,  swimming  pool, 
reception  and  reading  rooms,  a  library,  billiard  (six 
tables)   and  game  and  class  rooms,  and  a  haU  that 


AMERICAN  LIBERALITY  TO   WORKMEN     213 

will  seat  1,100  persons.  The  building  is  heated  by 
steam  and  lighted  by  electricity  from  the  works,  and 
in  the  rear  of  it  are  grounds  for  flower-beds,  croquet 
and  lawn  tennis.  The  gymnasium  is  well  supplied 
with  apparatus  ;  naturally  it  is  more  popular  with  the 
boys  and  the  younger  men  than  with  the  older  men  of 
the  works,  but  the  two  bowling  alleys  are  in  general 
favor.  It  has  twenty-one  dressing-rooms  and  248 
lockers.  There  are  classes  with  free  instruction  for 
young  men,  young  Women  and  boys.  The  bathing 
arrangements  are  admirable ;  the  large  swimming 
pool  occupies  part  of  two  stories  :  there  are  sixteen 
baths  — shower  and  tub  :  one  towel  is  furnished  free 
and  others  for  a  cent  apiece.  The  bath-house  is  open 
from  7  A.  M.  to  9.30  P.  M. :  sons  of  members,  from 
nine  to  sixteen  years  old,  can  enjoy  the  privilege  of 
using  the  pool  for  the  summer  season  of  five  months 
for  25  cents  :  in  1890,  13,000  baths  were  taken,  and 
this  has  been  about  the  average  since,  though  the 
number  of  members  has  varied  from  800  to  1,300. 
The  city  of  Joliet  furnishes  water  for  the  building 
free,  while  the  company  pays  for  light,  heat,  taxes 
and  the  salary  of  the  superintendent :  the  company 
also  keeps  the  building  in  repair.  No  spirituous  or 
intoxicating  liquors  can  be  sold  or  used  on  the  pre- 
mises or  brought  to  them :  no  betting  or  gambling  is 
allowed. 

No  religious  or  political  meetings  can  be  held  in  the 
large  hall,  which  is  used  for  lectures  and  entertain- 
ments (twenty-seven  in  1890-91,  in  a  course  for  a  two- 
dollar  fee),  and  for  a  Sunday  afternoon  song  service. 
An  orchestra  meets  in  the  art-room  once  a  week. 
There  are  evening  classes,  at  a  small  fee,  in  arithmetic, 


214  A  DIVIDEND  TO  LABOR 

shorthand,  penmanship,  drawing  and  other  practical 
subjects.  The  kindergarten  is  free  to  children  of 
members ;  others  pay  one  dollar  a  month  for  tuition. 
Wives  and  adult  daughters  of  members  can  join  the 
evening  classes,  and  can  take  books  from  the  library 
(over  5,700  volimies)  in  their  own  names  for  twenty- 
five  cents  a  year.  The  race  mixture  at  JoKet  is  shown 
by  the  presence  of  books  and  periodicals  in  German, 
Swedish,  Pohsh  and  Hungarian. 

There  is  a  committee  of  the  members  on  benevolent 
action,  and  the  works  have  a  mutual  aid  society,  with 
1,400  members :  the  assessment  is  25  cents  a  month : 
the  relief  is  75  cents  a  day,  and  $100  in  case  of 
death.  There  is  a  savings-bank  and  a  mutual  life  in- 
surance company  in  the  club,  and  the  club  writes  fire 
insurance  at  the  lowest  legitimate  rates.  The  mem- 
bers paying  for  their  houses  on  installments  can  bring 
their  papers  to  the  library  and  receive  information  as, 
to  their  precise  financial  position  :  those  intending  to 
build  can  have  working  plans  and  specifications  made 
for  them  without  charge.  There  are  co(5perative  ar- 
rangements for  the  purchase  of  flour,  coal  and  po- 
tatoes, books,  magazines  and  newspapers,  and  rail- 
road and  steamship  tickets.  The  librarian  furnishes 
stationery  for  correspondence  free,  issues  foreign 
drafts,  and  domestic  and  foreign  money  orders,  and 
exchanges  foreign  money.  An  annual  flower  exhibi- 
tion, a  monthly  bulletin,  "  ladies'  day "  (Friday  of 
each  week)  and  university  extension  classes  are  other 
things  to  be  noted.  The  building  has  a  homelike 
appearance  as  if  run  by  workingmen  for  their  own 
comfort,  spittoons  abound,  and  no  placards  exhort  the 
members  in  the  language  of  "  Don't."     The  influence 


AMERICAN  LIBERALITY  TO   WORKMEN     215 

of  the  club  upon  character  has  been  marked,  and  the 
generosity  of  the  company  is  fully  appreciated  by  the 
more  intelligent  part  of  the  force. 

The  Carnegie  Steel  Company,  of  Pittsburg,  at  its 
various  estabhshments,  —  the  Lucy  Fm'nace,  Keystone 
Bridge  Works,  Upper  and  Lower  Union  Mills,  at 
Pittsburg ;  the  Homestead  Steel  Works  ;  the  Edgar 
Thomson  Steel  Works,  at  Braddock,  and  the  Du- 
quesne  Steel  Works,  —  employs  about  15,000  men. 
When  running  full-handed,  it  pays  them  some  $13,- 
500,000  a  year  in  wages,  —  about  $50,000  a  day, 
and  an  average  of  i3  a  day  to  each  employee.  In 
1889  Mr.  Andrew  Carnegie  adopted  a  plan  for  en- 
couraging savings  by  the  men  and  for  manifesting  the 
good-will  of  the  company,  which  has  had  very  bene- 
ficial results.  The  company  established  a  savings 
fund,  making  no  charge  for  clerical  or  other  service, 
with  the  following  rules :  A  first  deposit,  not  less  than 
$3  is  received  from  any  employee  (from  no  other 
person  except  by  special  arrangement),  and  subse- 
quent deposits  can  be  made  in  sums  not  less  than 
$1  up  to  $2,000  in  all:  by  special  arrangement 
only  can  this  amount  be  exceeded.  On  his  deposit 
the  employee  receives  6  per  cent,  interest  every  year, 
without  regard  to  profits  or  losses  made  by  the  com- 
pany. Every  manager  of  a  department  wiU  receive 
deposits,  for  the  convenience  of  the  employee.  The 
number  of  depositors  availing  themselves  of  this  gen- 
erous rate  of  interest  (fifty  per  cent,  higher  than  the 
savings-bank  rate  in  Pittsburg)  has  been  large,  and 
in  1898  a  million  dollars  in  round  numbers  stood  to 
their  credit :  quite  a  number  of  men  have  had  com- 
pound interest  on  their  deposits  for  some  years.    The 


216  A  DIVIDEND  TO  LABOR 

great  advantages  of  this  plan  to  the  thrifty  employee 
are  obvious :  and  it  is  only  natural  that  a  Pittsburg 
paper,  speaking  of  the  contention  of  English  iron  and 
steel  manufacturers  for  "  the  same  freedom  in  the  em- 
ployment of  labor  as  that  enjoyed  by  the  Carnegie 
Steel  Association,"  should  remark :  "It  is  important 
that  they  shoidd  understand  exactly  what  the  Carnegie 
company  does."  The  company  has  also  loaned  on 
long-time  mortgages  over  half  a  million  dollars,  to 
workmen  desirous  of  building  houses  of  their  own :  a 
large  number  have  thus  acquired  homes. 

Mr.  Carnegie's  high  estimation  of  public  libraries 
as  a  social  force  and  his  munificence  in  establishing 
them  are  well  known  in  Great  Britain  and  the  United 
States.  When  he  promised,  some  years  ago,  to  erect 
a  library  at  Homestead,  it  was  before  "  experience 
taught  us  at  the  Edgar  Thomson  works  that  a  library 
was  much,  but  not  all."  ^  Accordingly,  first  at  Brad- 
dock  and  then  at  Homestead,  a  little  nearer  Pittsburg, 
Mr.  Carnegie  has  built  and  generously  endowed  insti- 
tutions which,  while  called  "  libraries  "  for  short,  are 
combination  buildings  like  that  at  Johet,  and  which 
are  more  properly  to  be  styled  club-houses.  The  in- 
stitution at  Braddock,  the  Carnegie  club  and  library, 
while  finely  equipped,  is  surpassed,  from  the  material 
point  of  view,  by  the  imposing  structure  on  the  hill- 
side at  Homestead. 

The  Braddock  Library  has  cost  some  $300,000  to 
buUd  and  equip,  and  it  receives  $10,000  a  year  from 
Mr.  Carnegie :  but  this  last  sum  does  not  include  his 
frequent   gifts.     Its  many  activities   much  resemble 

1  Speecli  at  the  dedication  of  the  Carnegie  Library,  Cluh-House,  and 
Museum  at  Homestead,  November  5,  1898. 


AMERICAN  LIBERALITY  TO   WORKMEN     217 

those  which  Mr.  Crane  formerly  superintended  at 
Joliet,  while  they  are  maintained  on  a  larger  scale. 
I  note,  therefore,  but  a  few  details.  The  club  fee  for 
employees  is  one  dollar  a  quarter,  for  non-employees 
twice  as  much.  A  course  of  eight  lectures  and  enter- 
tainments is  given  once  a  fortnight  for  a  dollar  fee. 
Classes  will  be  organized  for  ten  persons  desiring  in- 
struction in  a  practical  study,  for  fifty  cents  a  month 
tuition.  Smoke  talks  and  concerts  and  an  annual 
exhibition  of  paintings  are  held.  The  library  proper 
is  free  to  all  the  residents  of  Braddock :  it  is  open 
Sunday  afternoons  as  well  as  week  days :  it  has  ex- 
change stations  at  three  centres  near,  like  Wilkins- 
burg:  and  it  sends  traveling  libraries  of  50  to  100 
children's  books  to  the  schools  in  outlying  districts. 
The  club  and  library  publish  a  monthly  "  Journal." 

The  Carnegie  Library  at  Homestead  is  a  mag- 
nificent fireproof  building,  228  x  113  feet,  in  the 
French  Renaissance  style.  It  has  a  park  about  it 
and  conunands  a  fine  view.  The  music  hall  occupies 
the  eastern  end:  the  auditorium  seats  about  1,200 
persons,  and  contains  a  fine  organ,  to  the  right  of  the 
stage ;  the  latter  is  arranged  for  theatrical  or  concert 
uses.  The  hall  will  be  rented  for  entertainments  of 
reputable  character,  and  the  use  of  it  is  given  for 
the  commencements  of  the  high  schools  of  Homestead 
and  Mifflin  township,  and  for  meetings  "  held  for 
the  general  good  of  the  public."  The  library  proper 
occupies  the  centre  of  the  structure  :  it  contains  some 
7,000  volumes,  —  the  use  of  which  is  free  to  residents 
of  Homestead  and  vicinity.  Books  may  be  ordered  by 
telephoning  to  a  delivery  station  in  the  town  :  a  book 
will  be  reserved  for  an  applicant  for  one  cent  to  pay 


218  A  DIVIDEND   TO  LABOR 

for  a  postal  card  notifying  him  of  its  return  to  the 
library.  Access  to  the  shelves  is  given  to  the  public 
to  select  books  or  to  examine  those  of  any  one  class. 
There  is  a  special  reading-room  for  children,  and  a 
"  Library  News  "  published  monthly  for  the  whole 
institution.  Over  35,000  volumes  were  drawn  between 
November  5,  1898,  and  April  1,  1899. 

The  Homestead  Library  Athletic  Club  has  its  quar- 
ters in  the  western  end  of  the  building,  devoted  to  a 
gymnasium,  baths  and  swimming  pool,  bowling  alleys, 
and  billiard  and  card  rooms.  It  is  under  the  control 
of  nine  directors  elected  by  the  members.  The  mem- 
ber eighteen  years  of  age  or  older  pays  four  doUars 
in  one  payment  or  six  doUars  in  quarterly  payments, 
if  an  employee  :  other  persons  (217  out  of  a  total  of 
1,198,  January  1,  1899)  pay  six  or  eight  dollars,  ac- 
cording to  the  time  of  payment.  Women  pay  one  doUar 
a  quarter  and  boys  under  eighteen,  fifty  cents,  for  the 
use  of  the  club  in  limited  hours  :  boys  are  not  admitted 
to  the  billiard  or  card  rooms.  The  library  endowment 
supplements  the  fees  received.  Forty  classes  in  the 
gymnasium  numbered  904  in  January,  1899.  There 
are  committees  on  bicycling,  baseball,  Rugby,  cricket, 
football,  bowling,  tennis  and  quoits,  as  well  as  for 
the  other  usual  purposes.  Grounds  for  outdoor  sports 
will  be  laid  out.  The  educational  department  of  the 
club  will  be  developed,  the  institution  so  splendidly 
housed  being  yet  in  its  infancy.  Doubtless  Mr.  Car- 
negie wiU  be  able  to  say  of  it  in  time,  as  of  the  Brad- 
dock  club,  that  its  "  influence  has  been  as  potent  as  it 
has  been  beneficial  and  surprising."  ^ 

1  Mr.  Carnegie  has  announced  his  intention  of  building  a  similar 
library  and  club-house  at  Duquesne,  a  few  miles  from  Homestead. 


AMERICAN  LIBERALITY  TO   WORKMEN     219 

The  Cambria  Steel  Company  (formerly  the  Cambria 
Iron  Company),  of  Johnstown,  Penn.,  maintains  a  public 
library  with  some  10,000  volumes.  In  the  library  building 
is  a  good  gymnasium,  used  by  the  Athletic  Club.  The  com- 
pany has  a  public  hall,  the  use  of  which  is  given  for  enter- 
tainments, lectures  and  Christian  Association  meetings  at  a 
nominal  sum.  It  has  established  classes  for  mechanical 
drawing,  and  gives  rooms  for  the  meetings  of  art  and  mu- 
sical associations.  The  Cambria  Mutual  Benefit  Associa- 
tion competes  successfully  with  the  benevolent  and  fraternal 
orders,  often  supplementing  their  assistance,  and  is  more 
liberal  than  the  accident-insurance  companies.  Membership 
is  voluntary ;  on  October  31,  1898,  there  were  8,170  mem- 
bers :  dues  received  from  members  during  the  year  were 
$68,356.30 ;  the  pro  rata  donation  of  the  company  was 
S7 ,392.58;  the  total  receipts  were  $88,968.80;  the  dis- 
bursements were  $72,183.73  ($5,090  for  hospital  expenses 
and  furnishing),  and  the  balance  was  $16,785.07.  Mem- 
bers are  classified  as  general  and  special.  General  members 
are  all  those  not  over  forty-five  years  (1)  who  pay  30  cents  a 
month,  and  receive  three  dollars  a  week  for  disability  ($30 
for  funeral  expenses)  ;  (2)  who  pay  40  cents,  and  receive 
four  dollars  for  disability  ($40  for  funeral)  ;  (3)  who  pay  50 
cents  and  receive  five  dollars  ($50  for  funeral).  An  em- 
ployee over  forty-five  years  can  join  either  of  the  forego- 
ing divisions  by  paying  25  cents  a  month  additional.  The 
special  class  consists  of  ordinary  shop  hands,  clerks,  women 
employed  in  factories,  and  outside  laborers,  paying  75  cents 
monthly  ;  and  of  all  other  employees  in  and  about  the  mines, 
mills  and  works,  including  mechanics  and  machinists  who 
pay  one  dollar  a  month :  if  between  forty-five  and  fifty-five 
years  of  age,  a  member  of  the  special  class  pays  25  cents 
a  month  additional.  The  benefits  to  all  alike  are  five  dol- 
lars a  week  for  disability ;  $50  for  funeral  expenses,  in 
case  of  death  from  disease  or  from  general  accidents ;  $500 
in  case  of  the  loss  of  a  hand  or  a  foot  by  accident  while  at 
work,  or  going  to,  or  returning  from  it ;  $1,000  in  case  of 


220  A  DIVIDEND  TO  LABOR 

total  blindness  resulting  from  an  accident  under  the  same 
conditions,  and  $200  if  the  accident  happened  while  at  work 
and  caused  the  loss  of  an  eye,  the  greater  benefits  covering 
the  less ;  needless  exposure  on  a  railway  track  vitiates  the 
member's  claim.  The  company  erected  a  hospital  which 
the  association  maintains.  The  company  acts  as  treasurer ; 
supplies  office  room  and  clerical  service  free ;  contributes 
one  dollar  a  year  for  each  member,  and  guarantees  the  pay- 
ment of  all  benefits.  In  return,  the  member  releases  the 
company  from  liability  to  actions  for"  damages  so  long  as 
he  is  a  member. 

The  employees  (1,000  in  number)  of  the  IngersoU-Ser- 
geant  Drill  Company,  of  Easton,  Penn.,  started  a 
mutual  benefit  association,  modeled  on  the  Cambria  associ- 
ation, January  1,  1899 ;  it  numbers  already  518  members. 
The  contribution  is  but  25  cents  a  month :  the  benefits  are 
those  of  the  special  class  in  the  Cambria  association  ($50 
more  for  funeral  expenses). 

The  Pennsylvania  Steel  Company,  of  Steelton, 
Penn.,  has  given  to  that  borough  a  large  modern  style 
schoolhouse,  and  established  in  it  a  small  library  for  the 
pupils  and  for  the  citizens  of  the  town.  The  company  pro- 
vides informally  for  workmen  disabled  by  accident  or  old 
age.  The  branch  of  this  company  at  Sparrow's  Point, 
near  Baltimore,  has  there  a  tract  of  1,000  acres  of  land ;  it 
owns  all  the  schools,  boarding-houses  and  dwellings,  but 
leases  the  sites  of  the  different  churches.  A  branch  savings- 
bank,  not  managed  by  the  company,  is  well  patronized.  No 
liquor  is  sold,  and  prices  at  the  company's  store  are  lower 
than  the  prevailing  rates ;  there  is  a  small  club-house. 

The  Cleveland-Cliflfs  Iron  Company  has  mines 
and  furnaces  at  Marquette,  Ishpeming,  and  other 
points  in  Marquette  County,  Micliigan,  on  Lake  Supe- 
rior. Its  benefit  fund  works  as  follows :  From  each 
employee's  monthly  pay  thirty  cents  is  deducted,  and 
the  company  contributes  an  equal  amount.     For  every 


AMERICAN  LIBERALITY  TO   WORKMEN     221 

fatal  accident  or  total  disablement  $500  is  paid.  To 
men  partially  disabled  in  the  mine,  and  having  to  stop 
work,  payment  is  made  at  the  rate  of  125  per  month 
for  a  married  man,  and  $20  for  a  single  man.  These 
payments  are  made  on  the  authority  and  requisition  of 
the  physician  in  charge  of  the  hospital.  The  company 
leaves  the  accovmts  perfectly  open,  and  defrays  the 
entire  charge  of  keeping  them.  A  joint  committee  of 
the  men  and  the  company  worked  unsatisfactorily,  the 
men  paying  but  little  attention  to  it,  and  it  being 
difficult  to  get  them  to  attend  a  meeting  to  approve 
items  of  expenditure :  it  was  therefore  abandoned  eight 
or  nine  years  ago,  and  there  has  been  no  complaint. 
The  hospital  service  is  maintained  by  deductions  from 
the  pay  of  each  man  of  one  dollar  a  month.  This  is 
paid  to  a  corps  of  physicians  and  surgeons,  who  keep 
an  excellent  hospital,  dispensary  and  pharmacy,  and, 
without  any  further  charge  to  the  men  or  their  fam- 
ilies, attend  them  in  all  cases  of  sickness  as  weU  as 
accidents,  —  at  their  houses,  if  they  can  be  properly 
cared  for  there,  or  if  not,  at  the  hospital.  The  com- 
pany contributes  no  money  for  this,  but  simply  exer- 
cises its  judgment  as  to  the  efficiency  and  character 
of  the  physicians  and  surgeons.  The  several  mining 
companies  in  the  city  of  Ishpeming  unite  in  this  hos- 
pital plan,  and  thus  enough  money  is  collected  to  em- 
ploy a  very  efficient  medical  service.  The  company 
pays  prizes  for  the  best-kept  premises,  for  vine  plant- 
ing and  for  window-box  gardening  —  this  year  these 
prizes  are  twelve  amoiuiting  to  fl48  ;  four  amount- 
ing to  $30 ;  and  four  amounting  to  $20  respectively  ; 
the  competitors  obtain  plants  and  shrubs  at  reduced 
prices.     The  mines  employ  an  average  of  1,200  men. 


222  A   DIVIDEND   TO  LABOR 

The  number  of  persons  to  whom  competition  for  these 
prizes  is  open  is  about  650,  including  those  renting 
houses  or  simply  town  lots  from  the  company.  On 
its  steamboats  the  company  employs  about  250  men ; 
it  insists  that  the  quarters  of  the  sailors  be  kept 
cleaner  than  is  customary,  these  being  provided  with 
facilities  for  the  occupants  to  keep  them  in  order, 
and  suitable  bath  arrangements.  The  vessels  are  in- 
spected once  or  twice  a  year,  and  reports  are  sent 
around  to  the  various  ships,  thus  stimulating  each  to 
make  a  good  record.  The  engineers  and  firemen  re- 
ceive prizes  awarded  to  the  force  of  the  boat  which 
has  made  the  most  improvement  during  the  year. 
Prizes  are  given  to  the  captains  who  bring  their  ships 
through  the  season  without  accident. 

The  Pope  Manufacturing  Company,  of  Hartford, 
Conn.,  shows  its  interest  in  the  comfort  of  its  3,000 
workmen  in  various  ways.  In  the  basements  of  the 
several  buildings  in  which  the  manufacture  of  bicycles 
is  carried  on,  each  man  has  a  spacious  locker  for 
himself,  with  aU  the  facilities  for  quick  cleaning  up. 
Warm  water  is  kept  flowing  by  the  rows  of  lockers, 
for  the  first  rinsing,  and  each  locker  has  its  individual 
faucet  with  cold  water  for  the  final  washing.  A  bicycle 
stable  is  provided  for  the  large  number  who  ride  the 
wheel.  Most  of  the  men  bring  their  dinner  or  buy  it 
at  the  lunch  counter,  where  everything  is  of  good 
quahty  and  sold  at  a  cost  price.  A  large  bowl  of 
soup  or  stew  is  sold  for  five  cents,  the  price  of  two  large 
mugs  of  coffee  or  a  bowl  of  crackers  and  milk.  The 
company  has  an  ample  lunch-room  capable  of  accom- 
modating 1,000  persons :  after  dinner  the  men  smoke 
and  play  cards,  or  go  into  the  large  adjoining  room, 


AMERICAN  LIBERALITY  TO   WORKMEN     223 

which  is  stocked  with  daily  and  weekly  papers  and 
magazines,  and  has  a  small  library.  There  is  a  brass 
band  and  an  orchestra,  made  up  of  employees.  The 
Pope  Company  Mutual  Benefit  Association,  with  300 
members,  pays  $6  a  week  relief  in  case  of  sickness 
and  '150  for  funeral  expenses. 

Whitinsville,  Mass.,  is  a  notable  instance  of  the 
advantages  resulting  from  the  ownership  of  an  in- 
dustry continuing  from  the  first  to  the  third  genera- 
tion in  the  same  fanjily,  residing  in  the  factory  town 
itself.  The  Whitins  now  mmaber  several  distinct 
households,  the  heads  of  which  are  engaged  in  the 
general  cotton  machinery  manufacture  originated  be- 
tween 1825  and  1830.  The  village  itself  is  one  of  the 
most  complete  examples  to  be  found  in  the  United 
States  of  a  manufacturing  place  dominated  by  a  single 
industry  in  the  hands  of  one  family.  (In  the  present 
corporation  half-ar-dozen  Whitins  are  the  paramount 
owners  of  stock  and  the  conductors  of  the  business.) 
One  reaches  Whitinsville  by  the  railroad  running  from 
Worcester,  Mass.,  to  Providence,  R.  I.,  getting  off  at 
a  station  called  Whitins'.  A  few  rods  away  is  a 
cotton-mill  employing  some  100  hands  which  is  owned 
by  the  Whitins  :  a  few  neat  tenements  stand  near. 
On  the  other  side  of  the  mill  pond  is  the  residence  of 
one  of  the  family.  Keeping  on  in  the  same  direction 
for  a  mile  and  a  half,  the  omnibus  brings  us  into  Whit- 
insAolle  itself :  the  carriage  has  followed  through  the 
pine  woods  a  railroad  track  used  for  freighting  from 
the  village  to  Whitins'  station.  On  this  line  runs  the 
first  electric  motor  used  for  freight  purposes  in  the 
country  :  it  is  now,  of  course,  somewhat  out  of  date  in 
its  style.     A  more  conservative  tendency  of  the  family 


224  A  DIVIDEND  TO  LABOR 

was  shown  in  the  late  introduction  of  the  electric 
light,  and  it  still  appears  in  the  conspicuous  absence  of 
a  trolley  line  between  the  village  and  the  station. 

In  Whitinsville  we  find  at  once  the  marks  of  a  high- 
class  New  England  village  —  fine  roads  with  asphalt 
sidewalks  and  well-shaded,  flower  gardens  about  the 
residences  not  owned  by  the  company,  churches  and 
schools  in  abundance.  We  see  another  cotton-mill 
on  the  left  before  coming  to  the  great  and  special 
industry  of  the  place,  the  manufacture  of  machinery 
for  the  cotton  business,  in  which  1,500  men  are  em- 
ployed. The  men  are  chiefly  a  high  grade  of  Irish, 
the  business  demanding  more  than  usual  intelligence. 
They  live,  with  their  families,  in  some  300  houses 
owned  by  the  Whitins  (who  offer  no  special  induce- 
ments to  them  to  become  owners  of  homes).  These 
tenements  are  considerably  above  the  average  of  those 
to  be  seen  in  the  ordinary  cotton  manufacturing  town, 
but  the  range  is  great  from  a  few  old  houses  on  a  side 
street  (quite  out  of  keeping  with  the  general  looks  of 
the  place)  through  the  large  nimiber  of  very  decent 
houses  up  to  the  attractive  cottages  near  the  pond 
above  the  village.  Opposite  the  machinery  works  is 
the  old  Whitin  house,  surrounded  by  beautiful  grounds, 
in  full  view  from  the  street. 

A  short  distance  down  the  street  is  the  Memorial 
Building  erected  on  a  central  corner  by  the  Whitins 
over  twenty  years  ago.  This  was  before  the  archi- 
tectural revival  due  largely  to  the  Philadelphia  Ex- 
position in  1876,  and  the  building,  though  large  and 
commodious,  has  not  the  beauty  of  similar  halls  in 
other  New  England  villages.  It  has  more  of  the  air  of 
a  plain  high  schoolhouse.     It  contains  a  large  haU  in 


AMERICAN  LIBERALITY  TO  WORKMEN     225 

the  second  story  for  lectures  and  entertainments: 
several  smaller  haUs  and  class-rooms,  and  a  library  for 
the  village,  for  the  use  of  which  a  dollar  a  year  is 
charged.^  As  the  centre  of  the  town  (Northbridge) 
is  at  some  distance,  with  its  town  hall,  this  memorial 
hall  suppHes  its  place  for  aU  those  general  purposes 
which  the  town  haU  serves  in  New  England.^ 

The  school  system  of  Whitinsville  is  provided  with 
a  fine  high  school  and  other  buildings  for  lower  grades : 
$80,000  is  reported  to  have  been  the  cost  of  all  these: 
evening  schools  are  held.  When  it  is  known  that 
some  76  per  cent,  of  the  property  in  the  village  is  held 
by  the  Whitins,  it  will  be  seen  that  a  large  part  of 
the  expense  of  keeping  up  the  roads,  the  schools  and 
other  public  institutions  must  be  borne  by  them,  at 
their  own  instance  or  by  vote  of  town  meeting.  Purely 
voluntary  gifts  made  by  the  family  are  the  point  of 
land  made  into  a  little  park  in  the  centre  of  the  village, 
and  the  handsome  stone  church  of  the  CongTCgational- 

1  Where,  as  in  Whitinsville,  one  learns  that  a  library  of  this  kind  is 
not  largely  used,  it  is  well  to  remember  that  in  this  day  of  free  public 
libraries,  any  fee,  however  small,  has  the  effect  of  restricting  the  cir- 
culation greatly.  Uniformly  experience  has  shown  that  the  removal 
of  the  fee  is  followed  by  an  increase  of  the  number  of  card-holders  to 
sixfold  the  previous  list  at  least.  In  small  communities,  again,  the 
custom  can  safely  be  followed  —  always  successful  where  it  obtains 
—  of  leaving  the  books,  uncovered,  on  shelves  entirely  accessible  to 
the  frequenters  of  the  library.  No  community  can  fairly  be  called 
disinclined  to  reading  if  it  has  not  free  access  of  this  sort  to  the  books 
in  a  public  library.  The  small  losses  thus  incurred  sometimes  are 
much  more  than  counterbalanced  by  the  many  advantages  of  the 
plan. 

2  M.  E.  Levasseur  in  his  valuable  work,  L'Ouvrier  AmSricain,  makes 
the  mistake  of  asserting  that  there  is  no  municipal  administration  in 
Whitinsville,  /.  e,  that  it  is  separate  from  the  town  of  Northbridge 
in  which  it  lies.  He  is  more  correct  in  stating  that  no  liquor  is 
allowed  to  be  sold  in  the  village. 


226  A  DIVIDEND   TO  LABOR 

ists  (to  the  expense  of  which  the  family  was  the  chief 
contributor).  The  thrifty  habits  of  the  workpeople 
are  indicated  by  the  fact  that  in  1896  the  savings- 
bank  of  the  place  had  1633,000  on  deposit,  at  4  per 
cent,  interest. 

Hopedale,  Mass.,  is  one  of  the  most  finished  and 
best  kept  manufacturing  villages  anywhere  to  be 
found ;  there  is  a  large  absence  of  the  usual  depress- 
ing features,  and  evidences  abound  of  private  taste 
and  the  employer's  liberality.  The  place  owes  its 
name  to  Rev.  Adin  Ballon,  who  established  here  on 
Mill  River  in  1841  the  most  sensible  and  practical  of 
Christian  Socialist  communities.^  This  did  not  have 
a  sufficient  financial  foundation,  and  the  Hopedale 
community  had  to  give  place  in  1856  to  the  manufac- 
turing and  mechanical  talent  of  the  Draper  family, 
who  have  by  no  means  desired  to  extirpate  the  kindly 
spirit  of  the  earlier  years  of  Hopedale,  which  is  still 
much  in  evidence  under  other  forms. 

The  population  of  the  town  (set  ojffi  from  Milford 
in  1886)  is  1,100,  nearly  aU  of  whom  are  connected 
with  the  shops  where  the  Draper  Company,  the  suc- 
cessor of  five  preceding  firms  (capital  $6,000,000), 
manufactures  machinery  for  cotton  -  mills,  —  looms, 
"temples,"  adjustable  spinning-rings,  spindles,  etc., — 
over  100  kinds  of  machines  in  all.  Of  the  1,400  men 
at  work,  the  great  majority  come  from  the  adjoining 
towns  where  shoemaking  and  farming  have  been  the 
cliief  industries.  The  population  is  not  stable  beyond 
some  40  per  cent.  :  the  skilled  mechanics  are  restless 
and  ambitious  to  improve  their  lot,  and  much  inclined 

^  See   the   History  of  the  Hopedale   Community,  by  Adin  Ballou, 
edited  by  W.  S.  Heywood.    Thompson  &  Hill,  LoweU,  Mass.,  1897. 


AMERICAN  LIBERALITY  TO   WORKMEN     227 

to  move  away  after  a  few  years,  though  they  fre- 
quently return  :  they  do  not  care,  as  a  rule,  to  own 
their  houses.  Under  these  circumstances,  the  com- 
pany largely  owns  the  dwellings  of  the  place :  there  are 
no  tenements  of  the  usual  style,  and  the  variety  of  the 
cottages  is  great.  Nearly  all  the  company's  houses 
have  lawns,  bathrooms,  furnaces  and  all  the  modem 
conveniences,  —  water,  gas  and  electric  light,  with  good 
drainage :  garbage  and  ashes  are  removed  every  day 
or  two  by  the  town  authorities.  Sanitary  rules  are 
strict  and  all  buildings  are  kept  in  good  repair  by  the 
company.  Prizes  amounting  to  $200  are  offered 
annually  for  the  best  looking  yards,  etc.  Rents  vary 
from  f 6  to  f  20  a  month :  in  years  past  they  have  paid 
the  company  from  2  to  4  per  cent,  on  its  investment : 
there  are  two  large  boarding-houses  or  hotels,  owned 
by  the  company  and  leased. 

The  Hopedale  Mutual  Benefit  Association  is  an  en- 
tirely independent  organization.  For  the  six  months 
ending  June  1,  1899,  its  receipts  were  $1,208.30,  and 
its  expenditures  $706.85  :  in  eleven  years  the  asso- 
ciation paid  to  disabled  members  $8,118.88,  and  to 
representatives  of  deceased  members  $2,300.  The 
clergyman  of  the  Hopedale  Parish  or  some  one  of  its 
organizations  relieves  cases  of  distress  not  provided 
for  by  the  association,  with  funds  contributed  by  indi- 
viduals or  the  treasuries  of  these  bodies. 

George  A.  Draper  and  Eben  S.  Draper,  sons  of 
George  Draper,  have  buUt  a  fine  church  of  stone  in 
memory  of  their  parents,  at  an  expense  of  some 
$60,000,  replacing  Adin  BaUou's  simple  structure. 
A  town  hall  of  brick  was  a  gift  to  the  new  munici- 
pality from  George  Draper.     It  contains  a  well-selected 


228  A  DIVIDEND   TO  LABOR 

* 

library  of  7,000  volumes:  the  town  appropriates  1500 
a  year  for  new  books  and  $1,000  for  administration. 
Mr.  J.  B.  Bancroft,  of  the  company,  is  building  a 
handsome  public  library  of  granite,  to  cost  $40,000, 
as  a  memorial  to  his  wife.  A  statue  of  Adin  Ballou 
will  soon  be  erected  in  this  dale  where  his  hope  has 
experienced  such  a  sea-change. 

The  National  Cash  Register  Company,  of  Day- 
ton, Ohio,  has  deservedly  attracted  much  attention 
in  the  last  three  or  four  years  on  account  of  the  con- 
sistency and  thoroughness  with  which  the  two  brothers, 
J.  H.  Patterson  (president)  and  F.  J.  Patterson 
(vice-president),  have  reorganized  the  usual  factory 
regime.  The  ordinary  superintendent  has  been  done 
away  with,  for  some  five  years.  "  The  entire  business 
is  conducted,  under  the  direction  of  the  president, 
vice-president  and  general  manager,  by  a  series  of 
committees.  For  the  business  departments  there  is  the 
executive  committee,  composed  of  nine  members,  with 
the  general  manager  of  the  company  as  chairman  and 
executive  officer,  under  whom  is  the  direction  of  the 
general  policy  of  the  business  and  the  conduct  of  its 
affairs.  The  working  department  is  controlled  by  a 
factory  committee  of  five  experts  in  various  lines  of 
factory  work,  each  of  whom  acts  as  chairman  in  turn. 
This  committee  meets  regularly  for  general  consulta- 
tion. .  .  .  The  duties  are  such  as  are  generaRy  as- 
signed to  a  superintendent  and  his  assistants.  .  .  . 
There  are  besides  an  invention  committee,  the  office 
committee,  and  other  similar  groups  having  special 
duties  to  perform.  .  .  .  The  selling-force  ...  is  imder 
the  immediate  supervision  of  seven  district  managers, 
who  are  responsible  to  the  manager  of  agencies.  .  .  . 


AMERICAN  LIBERALITY  TO  WORKMEN     229 

They  meet  at  the  factory  every  few  months.  .  .  . 
Each  of  these  committees  and  divisions  has  its  special 
work,  and  makes  its  decisions  independently.  .  .  . 
Important  matters  .  .  .  may  be  carried  from  the 
lower  to  the  higher  for  decision.  Only  matters  of 
the  greatest  importance  are  referred  to  the  president 
and  vice-president,  so  that  a  large  portion  of  their 
time  may  be  devoted  to  the  study  of  methods  for  en- 
larging and  extending  the  business."  ^ 

A  series  of  monitor-boards  in  colors  takes  the  place 
of  record,  stock  and  other  books,  for  the  ordering  and 
planning  of  the  work  of  the  committees  and  the  de- 
partments. The  company  practices  the  greatest  pub- 
licity with  its  employees  ;  placards  inform  the  workers 
of  the  number  of  registers  to  be  made,  the  orders  on 
hand,  and  the  size  of  shipments.  Frequent  meetings 
of  all  or  a  part  of  the  factory  force  are  held,  semi- 
monthly meetings  of  the  foremen  of  factory  depart- 
ments (sixty-five  in  all),  and  annual  conventions  of 
the  salesmen  (some  300)  and  the  employees  (1,500), 
lasting  during  a  whole  week. 

The  company  encourages  employees  in  several  ways 
to  make  suggestions  or  criticisms.  In  every  depart- 
ment is  an  autographic  register  which  receives  sugges- 
tions in  duplicate,  the  employee  keeping  his  own  draft. 
In  1897  some  4,000  suggestions  were  thus  made,  of 
which  1,078  were  adopted :  in  1898,  2,500  were  made, 
the  number  naturally  diminishing  with  time  and  the 
improvement  of  the  manufacture.      Every  six  months 

^  See  the  handsome  pamphlet  issued  by  the  company,  A  New  Era 
in  Manufacturing.  The  company  publishes  a  variety  of  papers  and 
pamphlets  describing  its  business,  which  it  distributes  widely.  It 
makes  g^at  use  of  the  printing-press,  doing  its  own  work  in  this 
line. 


230  A   DIVIDEND   TO  LABOR 

$615  in  gold  are  given  in  prizes  varying  from  $5  to 
$50,  to  the  fifty  members  of  the  factory  and  office 
forces  who  make  the  best  suggestions  for  improvement 
in  the  manufacture  of  registers,  or  in  the  conduct  of 
the  business.  Officers  and  heads  of  departments,  with 
their  assistants,  are  debarred  from  competition.  The 
presentation  of  prizes  is  made  the  occasion  of  an 'out- 
door festival  in  summer,  with  music  and  fireworks, 
and  a  celebration  in  the  Dayton  Opera  House  in  the 
winter.  Public  monitor  boards  in  the  making,  selling 
and  recording  divisions  show  the  proficiency  of  each 
department  in  the  five  most  important  elements  of  its 
work,  —  in  the  factory,  for  instance,  health,  punctu- 
ality, quality,  quantity  and  cost;  these  records  are 
printed  in  the  semi-monthly  magazine,  the  "  N.  C.  R." 
The  department  showing  the  highest  standing  for  the 
month  is  the  prize  department,  and  it  receives  a  ban- 
ner which  hangs  in  its  room  during  the  following 
month.  The  department  with  the  best  record  for  the 
year  receives  a  special  prize,  usually  a  day's  trip  to 
Cincinnati  with  a  special  entertainment  and  all  ex- 
penses paid.  Monitor  boards  are  used  largely  in 
other  directions  by  committees  and  departments.  The 
employment  bureau  thus  keeps  a  record  of  all  persons 
employed  and  of  all  the  applications  made.  Only 
high  school  graduates  are  eligible  for  office  work ;  only 
men  educated  in  mechanical  and  manual  training 
schools  for  some  of  the  factory  rooms  ;  and,  after  1915, 
a  placard  facing  the  entrance  gives  notice  that  no  one 
will  be  engaged  who  has  not  attended  a  kindergarten 
in  childhood. 

The  company  pays  great  attention  to  the  pleasant- 
ness and   healthfulness  of   the    surroundings  of   the 


AMERICAN  LIBERALITY  TO   WORKMEN     231 

employees.  The  buildings,  plainly  furnished,  are  no- 
tably light,  clean  and  cheerful  looking;  palms  and 
flowers  are  seen  in  various  places,  and  the  factory 
grounds  were  laid  out  by  a  landscape  gardener.  The 
South  Park  of  Dayton,  as  this  quarter  is  now  called, 
has  been  made  very  attractive  by  the  pains  which  the 
company  has  taken  to  encourage  improvement :  it  gives 
prizes,  through  the  Improvement  Association,  to  the 
extent  of  $250  a  year,  for  the  best  kept  houses,  back 
yards,  window-boxes,  ornamental  planting  and  vine 
planting.  It  supplies  ground,  tools,  seed  and  instruc- 
tion for  forty  boys  to  learn  vegetable  gardening,  with 
prizes  of  $50  a  year. 

The  men  work  nine  and  one  half  hours  a  day  with 
ten  hours'  pay.  Each  employee  can  take  a  bath 
weekly  or  oftener  (twenty  minutes  time  allowed)  in 
work-hours,  in  the  company's  bathrooms.  The  two 
hundred  young  women  employed  work  in  separate  de- 
partments from  the  men  :  they  come  to  work  an  hour 
later  and  leave  ten  minutes  earlier,  —  eight  hours' 
work  for  ten  hours'  pay,  reckoning  the  ten  minutes' 
recess,  morning  and  afternoon.  Luncheon  is  served 
free  in  the  pretty  dining-room  on  the  fourth  floor : 
coffee,  tea  or  milk,  and  the  hot  portion  of  a  good 
luncheon  are  supplied  from  a  model  kitchen :  the  girls 
bring  whatever  else  they  wish.  A  rest-room  is  at  the 
service  of  the  indisposed :  a  piano,  purchased  by  the 
young  women,  and  reading  matter  are  available  during 
the  noon-hour.  The  women  have  regular  holidays 
during  the  year :  they  are  furnished  aprons  and  over- 
sleeves, laundered  free  of  charge,  and  they  sit  at  work  . 
in  chairs  with  high  backs  and  foot-rests. 

The  general  charge  of   the  numerous  institutions 


232  A   DIVIDEND   TO  LABOR 

which  the  Cash  Register  Company  maintains  for  the 
benefit  of  its  employees  is  in  the  hands  of  the  Ad- 
vance Department.  The  list  includes  a  kindergarten 
with  100  pupils ;  a  school  of  mechanics,  meeting 
Thursday  evening  (some  300  men  in  the  company's 
employ  study  in  various  schools)  ;  a  small  library, 
which  is  also  a  branch  of  the  Dayton  public  library ; 
an  industrial  school  for  110  girls  on  Saturday  morn- 
ing ;  a  cooking  class  for  about  the  same  number,  twice 
a  week ;  sewing  and  cooking  classes  for  women  ;  a  mil- 
linery school ;  the  boys'  gardens ;  a  penny  bank,  and  a 
kitchen-garden  for  children ;  the  domestic  economy  de- 
partment ;  a  dancing  school  with  three  classes ;  a  boys' 
club ;  an  autoharp  club  ;  a  janitors'  glee  club  (twenty- 
four  members)  ;•  a  band  and  orchestra ;  and  boys'  and 
girls'  gynmasimn  classes.  Most  of  these  activities  centre 
in  the  N.  C.  R.  House,  a  cottage  across  the  street, 
which  is  also  a  kind  of  social  settlement  on  a  small 
scale,  with  a  deaconess  in  charge. 

Other  organizations,  meeting  chiefly  in  the  factory 
buildings  or  in  the  N.  C.  R.  Hall,  in  the  centre  of 
Dayton  (used  also  for  lectures  and  entertainments, 
largely  at  the  company's  expense),  are  the  Relief 
Association  with  933  paying  members,  —  quarterly 
receipts  about  $1,000,  and  expenses  $725  ;  the  Ad- 
vance Club,  which  includes  the  officers  and  upper 
employees,  meeting  once  a  week  for  an  hour  and  a 
half  in  work  hours,  to  consider  suggestions  and  com- 
plaints ;  the  Women's  Century  Club  (208  members)  ; 
the  Women's  Guild  (93  members) ;  the  South  Park 
Girls'  Literary  Club  (140  members)  ;  the  Men's  Pro- 
gress Club,  with  369  members ;  the  Young  People's 
Club ;    the  Bicycle  Club  (90  members)  ;    the  Boys' 


AMERICAN  LIBERALITY  TO   WORKMEN     233 

Military  Brigade  (120)  ;  and  two  Improvement  As- 
sociations. The  company  takes  an  interest  in  many 
sides  of  the  life  of  its  employees,  —  from  their  500 
bicycles  which  it  cares  for  in  stables,  to  their  children, 
for  700  of  whom  it  supports  a  Simday-school,  with  a 
teachers'  association  :  "  Pleasant  Sunday  Afternoons  " 
is  the  weekly  record  of  the  school,  and  a  leaflet  ex- 
plains the  special  lesson,  which  may  be  devoted  to 
music,  flowers,  or  home-care,  as  well  as  to  Bible  truths. 
The  great  business  success  of  the  National  Cash 
Register  Company  is  undoubtedly  due,  in  large  part, 
to  the  good  feeling  which  its  sincere  efforts  to  benefit 
its  employees  have  engendered.  Six  years  ago  it  was 
losing  $1,000  per  day ;  there  were  many  strikes  and 
lockouts,  and  the  factory  was  set  on  fire  three  times, 
"supposedly  by  disaffected  employees."  Now  the 
visitor  remarks  at  once  not  only  the  high  degree  of 
intelligence  of  the  force,  but  the  pervading  feeling  and 
spirit  of  cooperation  in  a  common  cause.  A  situation 
in  the  factory  is  eagerly  sought :  4,000  applications 
for  employment  are  sometimes  on  file ;  the  banners, 
the  prizes,  and  the  monitor  boards  are  genuine  and 
effective  stimulants ;  but  the  friendly  feeling  of  the  em- 
ployer for  the  employed,  shown  in  so  many  and  varied 
ways,  is  the  great  secret  of  the  company's  prosperity. 
It  is  an  open  secret,  for  visitors  are  welcomed  and 
many  come ;  much  is  put  into  print  and  widely  circu- 
lated which  is  elsewhere  jealously  hidden.  The  com- 
pany figures  that  the  luncheon  given  to  the  girls  costs 
three  cents,  and  that  the  woman  does  five  cents  more 
work  each  day ;  this  it  holds  to  be  a  paying  invest- 
ment. In  aU  its  other  arrangements  for  the  comfort 
of  its  employees  the  company  finds  "  it  pays  "  to  be 


234  A  DIVIDEND   TO  LABOR 

kindly.  The  result  is  a  very  notable  combination  of 
business  sagacity  and  humane  helpfulness :  it  will 
doubtless  exert  great  influence.^ 

The  Stillwell-Bierce  and  Smith-Vaile  Company, 
of  Dayton,  Ohio,  engineers  and  contractors,  has  adopted 
the  factory  committee,  instead  of  the  superintendent,  to 
take  charge  of  the  shop.  It  is  made  up  from  the  officers  of 
the  company  and  heads  of  departments  in  the  engineering 
division,  and  holds  daily  sessions.  Suggestions  are  invited 
from  every  employee,  and  those  that  prove  of  practical 
value  are  paid  for.  The  men's  beneficiary  association  pays 
five  dollars  a  week  benefit.  Many  of  the  men  have  secured 
homes  through  the  building  and  loan  associations  for  which 
Dayton  is  noted. 

The  Cincinnati  (Ohio)  Milling  Machine  Company, 
makers  of  fine  machine  tools,  employs  240  men.  On  May 
1,  1899,  it  advanced  wages  and,  in  addition,  offered  its  em- 
ployees a  quarterly  dividend  on  wages  "  depending  upon 
the  increased  output  that  they  might  bring  about  through 
increased  efforts :  our  cost-book  will  show  the  gain  in  pro- 
duction per  man."  The  company  awards  $250  semi-annu- 
ally in  prizes  for  suggestions  for  the  benefit  of  the  industry ; 
any  suggestions  used  but  not  receiving  a  prize  "  will  be  paid 
for  at  their  actual  value."  The  company  provides  an  annual 
outing  for  its  employees  and  their  families :  each  employee 
receives  a  turkey  at  Christmas,  and  the  heads  of  depart- 
ments additional  presents.  The  company  intends  soon  to 
provide  a  kitchen,  dining-room,  baths  and  a  club-room  for 
its  men. 

The  Acme  Sucker  Rod  Company,  of  Toledo.  Ohio, 
the  head  of  which  is  Mayor  S.  M.  Jones,  employs  50  men. 
The  day's  work  is  eight  hours.  Mayor  Jones  declares  that 
it  costs  $40  to  $50  more  to  drill  an  oil  well  on  this  time 

^  See  an  excellent  article  in  the  American  Journal  of  Sociology  for 
May,  1898,  by  Paul  Monroe,  "  Possibilities  of  the  Present  Industrial 
System." 


AMERICAN  LIBERALITY  TO   WORKMEN     235 

than  on  the  twelve-hour  plan.  The  employees  receive  a 
week's  outing  with  pay,  and  for  four  years  they  have  had  a 
dividend  of  five  per  cent,  on  wages  handed  to  them  at 
Christmas.  Each  employee  is  addressed  in  the  dividend 
letter  as  "  Dear  Brother,"  and  a  booklet  accompanies  it  set- 
ting forth  Mayor  Jones'  views  of  the  need  of  social  reform. 
The  Golden  Rule  is  framed  on  the  walls  of  the  factory  as 
the  factory  rule.  Golden  Rule  Park  is  a  corner  lot  next 
the  works,  which  has  become  a  playground  for  children,  and 
a  pleasant  resort  for  their  parents :  at  "  Pleasant  Sunday 
Afternoons  "  the  questions  of  the  day  are  discussed  :  in  the 
winter  months  Golden  Rule  Hall  is  used.  There  is  a  coop- 
erative insurance  plan  in  effect  among  the  employees. 

North  Easton,  Mass.,  is  distinguished  among  New 
England  manufacturing  villages  by  the  possession  of 
a  series  of  public  buildings,  the  work  of  the  famous 
architect,  H.  H.  Richardson,  and  the  gift  to  the  town 
of  the  Ames  family.  Oliver  Ames,  the  first  of  that 
name  in  the  shovel  manufacture,  learned  the  indus- 
try of  his  father,  who  began  it  in  West  Bridgewater 
as  early  as  1776.  The  son  set  up  in  business  for 
himself  at  North  Easton  in  1803 ;  ^  Ziba  Randall's 
account-book  charges  Oliver  Ames  one  dollar,  "  april 
17,  1805,  for  Carting  6  Dousin  of  Shovels  to  boston." 
This  was  the  manufacture  which  now  employs  some 
500  men  and  turns  out  nearly  a  million  and  a  half  of 
shovels  every  year. 

OHver  Ames,  2d,  a  son  of  the  first  Ohver,  has  been 
the  special  benefactor  of  the  place.  His  first  gift 
was  a  beautiful  stone  church,  built  at  an  expense  of 
$100,000  — a  gift  supplemented  by  f  30,000  for  the 
erection  of  a  parsonage,  and  the  perpetual  care  of  the 

1  See  the  History  of  Easton,  by  W.  L.  ChafBn,  pp.  593,  594  —  a 
model  town  history. 


236  A  DIVIDEND   TO  LABOR 

two  buildings  and  the  adjoining  cemetery  (the  gift  of 
the  Ames  family).  Mr.  Ames  died  in  1877,  and  his 
will  contained  several  important  public  bequests.  A 
sum  of  $50,000  was  left  for  a  free  hbrary  —  of  which 
one  half  was  to  provide  a  building,  one  fifth  books, 
and  the  balance  a  fund  for  maintenance.  The  lat- 
ter amount  was  nearly  tripled  by  his  widow,  and 
the  generosity  of  his  daughter  was  such  that,  when 
the  library  was  opened,  the  amoimt  that  had  been 
spent  on  the  building  and  books  and  cataloguing  was 
nearly  $80,000 ;  there  are  now  12,000  volumes  on  the 
shelves. 

A  second  bequest  by  Oliver  Ames  was  a  fund  of  a 
like  amount  for  the  improvement  of  the  highways  of 
the  town,  on  condition  that  the  town  should,  every 
year,  add  $2,000  to  the  income.  In  1886  his  nephew, 
Governor  Ohver  Ames,  son  of  Oakes  Ames,  gave 
$2,000  for  planting  shade  trees  by  the  roads,  on  con- 
dition that  the  town  appropriate  $500  for  the  same 
purpose:  this  gift  was  to  be  renewed  annually  until 
all  the  roads  should  be  well  shaded. 

In  1868  Ohver  Ames  and  Sons  (now  a  corpora- 
tion) built  a  large  three-story  schoolhouse  (for  high 
and  grammar  grades)  from  the  foundation,  at  an 
expense  of  $40,000.  A  third  bequest  from  Oliver 
Ames,  2d,  afimd  of  $50,000,  was  made  for  the  benefit 
of  the  schools  of  Easton.  Provision  was  wisely  made 
that  the  town  should  every  year  appropriate  a  sum 
at  least  equal  to  the  average  amount  raised  per 
scholar,  in  the  preceding  year,  by  the  towns  of  the 
State.  In  1896  the  Oliver  Ames  High  School  building, 
costing  $70,000,  was  dedicated.  Oakes  Ames,  the 
eldest  son  of  the  original  Oliver,  left  $50,000  by  will 


AMERICAN  LIBERALITY  TO   WORKMEN     237 

"  for  the  support  of  schools  in,  and  for  the  benefit  of 
the  children  in,  what  is  now  School  District  No.  7, 
in  North  Easton ;  "  the  population  of  Easton  (some 
5,000)  is  mainly  in  the  North  village.  The  income 
of  this  fund  has  been  used  for  various  purposes. 
"  Illustrated  and  scientific  lectures  are  given  weekly 
through  the  winter  months  in  Memorial  Hall,  in- 
tended more  especially  for  the  children,  but  open  to 
all  without  admission  fee."  Magazines  ("St.  Nich- 
olas "  and  others)  have  been  placed  in  each  family  in 
North  Easton  having  children  in  school ;  and  members 
of  the  Ames  family  have  extended  this  gift  to  the  rest 
of  the  town.  This  fund  has  also  provided  supple- 
mentary books  and  apparatus  for  the  schools,  teachers 
and  supplies  for  the  industrial  classes  (sewing  and 
cooking  for  the  girls,  and  wood-working  and  mechan- 
ical drawing  for  the  boys),  physical  training,  and  a 
kindergarten. 

The  Memorial  Hall,  the  most  imposing  building  in 
North  Easton,  was  erected  by  the  children  of  Oakes 
Ames.  Built  on  high  ground,  upon  a  natural  ledge, 
it  contains  two  small  halls  on  the  first  floor,  a  large 
hall  on  the  second  floor,  and  a  Masonic  hall  above. 
It  is  one  of  the  most  striking  works  of  Richardson's 
genius,  which  is  also  seen  in  the  library,  the  hand- 
some railway  station  (a  gift  to  the  road  by  F.  L. 
Ames,  son  of  Oliver  Ames,  2d),  and  the  picturesque 
lodge  at  the  entrance  of  the  F.  L.  Ames  grounds. 
The  shovel  business  is  now  in  the  hands  of  the  third 
and  fourth  generations  —  all  the  Ameses,  who  super- 
intend it,  first  learning  the  trade  in  the  stone  shops. 

St.  Johnsbury,  Vt.,  is  a  manufacturing  village 
properly   named   in  connection   with  North  Easton. 


238  A  DIVIDEND  TO  LABOR 

E.  and  T.  Fairbanks  and  Company  here  manufacture 
over  60,000  scales  annually,  employing  more  than 
1,000  men,  —  the  largest  factory  of  the  kind  in  exist- 
ence. The  labor  employed  is  mostly  of  a  high  grade, 
the  men  being  of  American  birth,  largely  from  the 
surrounding  towns.  Thrift  and  taste  mark  the  whole 
place ;  the  workmen  are  home-owners,  and  many  have 
been  in  the  employ  of  the  firm  from  twenty  to  forty 
years.  A  kindly  feeling  between  the  two  parties 
has  always  prevailed.  "  The  senior  (Governor)  Fair- 
banks used  to  say  to  the  men,  '  You  should  always 
come  to  me  as  to  a  father.'  "  He  taught  economy  and 
industry  in  theory  and  in  practice.  "  His  sons  worked 
in  the  shop,  and  thoroughly  learned  the  trade." 

Formerly  the  employees  sustained  a  lyceum  with 
the  aid  of  the  firm,  liberal  prizes  being  offered  for  the 
best  essays  read.  Horace  Fairbanks  founded  a  free 
library  and  reading-room  and  an  art  gallery.  The 
Athenasum  building  contains  also  a  large  lecture  hall. 
There  are  now  12,000  volumes  in  the  library.  Dr.  B.  G. 
Northrop  wrote,  some  fifteen  years  ago,  "  Having 
visited  nearly  every  town  of  Massachusetts  and  Con- 
necticut, and  traveled  widely  in  this  country,  I  have 
nowhere  found  in  a  village  of  this  size  an  art  gallery 
so  costly  and  so  well  supplied  with  paintings  and 
statuary,  a  reading-room  so  inviting,  and  a  library  so 
choice  and  excellent  as  this."  Thaddeus  Fairbanks, 
another  founder  of  the  scale  factory,  built  and  en- 
dowed the  St.  Johnsbury  Academy,  at  an  expense  of 
$200,000.  A  Young  Men's  Christian  Association 
building  was  the  gift  of  Henry  Fairbanks,  and  the 
Museum  of  Natural  History  was  presented  to  the  town 
by  Franklin  Fairbanks,  then  the  head  of  the  company. 


AMERICAN  LIBERALITY  TO   WORKMEN     239 

The  widely  known  industrial  community  of  Pull- 
man, 111.,  is  probably  the  most  remarkable  attempt 
yet  made  to  establish  a  model  town  for  workmen.  It 
was  begun  in  May,  1880,  by  the  Pullman's  Palace  Car 
Company,  which  had  then  a  capital  of  some  sixteen 
million  doUars,  with  two  million  dollars  more  in  deben- 
ture bonds,^  and  could  manufacture  in  1885  eight  mil- 
lion dollars'  worth  of  freight  and  passenger  cars.  Mr. 
George  M.  PuUman,  desiring  to  give  the  large  nmn- 
ber  of  workmen  the  benefits  of  good  air,  drainage  and 
water,  and  freedom  from  the  temptations  of  a  great 
city,  secured  4,000  acres  of  land  on  the  Illinois  Cen- 
tral road,  ten  miles  south  of  Chicago,  in  the  town  of 
Hyde  Park ;  the  city  has  since  annexed  the  whole 
town,  but  Pullman  has  still  the  advantages  of  a  sub- 
urb. It  covers  300  acres,  and  lies  on  the  west  shore 
of  Lake  Calumet,  which  drains  into  Lake  Michi- 
gan, three  miles  distant ;  there  are  no  marshes  near, 
and  the  land  about  the  town  is  well  ditched.  The 
company  first  expended  nearly  a  million  dollars  on  a 
thoroughly  scientific  scheme  of  drainage.  One  system 
of  pipes  and  sewers  takes  the  rainfall  directly  into 
Lake  Calumet,  securing  a  good  cellar  for  every  house. 
A  second  system  conducts  house  sewage  into  a  large 
reservoir  with  a  capacity  of  300,000  gallons,  under 
the  water-tower ;  the  sewage  is  immediately  pumped 
to  a  large  model  farm,  "  now  a  source  of  profit ;  "  no 
offensive  odor  can  be  perceived  at  the  tower  or  the 
farm.  The  water-tower  which  pumps  its  supply  from 
Lake  Michigan  stands  in  the  centre  of  Pullman. 

1  The  capital  in  1894  was  $36,000,000,  with  S25,00O,0O0  surplus. 
The  value  of  the  real  estate  in  Pullman  had  also  increased  greatly. 
See  the  Report  of  the  Chicago  Strike  Commission  of  1894. 


240  A   DIVIDEND   TO  LABOR 

The  company  then  proceeded  to  build  the  town, 
which  in  1884  had  1,520  brick  tenements  in  houses 
and  flats,  with  a  frontage  of  five  miles  of  solidly  paved 
streets.  The  town  was  laid  out  by  skilled  architects, 
civU  engineers  and  landscape  gardeners,  and  it  pre- 
sents a  preeminently  neat  and  attractive  appearance. 
The  houses,  mostly  in  blocks,  and  ranging  from  those 
rented  in  flats  for  the  unskilled  laborers,  to  the  few 
which  stand  apart,  were  built  in  a  great  variety  of 
styles,  the  sky-line  being  much  diversified.  The 
streets  (eight  miles  in  1894)  are  wide,  well  shaded 
and  well  kept,  and  are  sprinkled  daily.  The  com- 
pany erected  a  large  market-house,  the  only  place 
where  meats  and  vegetables  are  sold ;  a  fine  arcade, 
containing  offices,  shops,  a  bank,  a  library  and  a 
theatre,  —  all  shopping  being  under  cover  in  these 
two  buildings  ;  and  a  handsome  hotel,  which  keeps  the 
only  bar  allowed  in  the  place  ;  naturaUy,  saloons  abound 
in  Kensington  and  other  quarters  near,  but  it  is  a 
great  gain  for  temperance  to  have  only  one  open  bar 
in  Pullman. 

The  company  does  not  sell  land  or  houses,  and  is 
thus  the  one  landlord.  It  stated  in  1894  that  the  net 
revenue  from  the  place  was  never  six  per  cent,  on  the 
entire  cost  (which  is  said  to  have  been  eight  million 
doUars)  ;  4|  per  cent,  was  realized  in  some  years. 
It  keeps  in  order  the  lawns  before  the  houses,  collects 
garbage,  and  provides  for  usual  repairs :  it  deducts 
rent  from  wages  as  these  are  paid.  Rents  range  from 
f4  a  month,  for  the  cheapest  flat  of  two  rooms,  to 
$100  for  the  largest  separate  house  in  the  place  ;  the 
usual  rent  is  from  $14  to  $25.  Each  house  has  water, 
gas  and  numerous   closets.     Most  of  the  houses  are 


AMERICAN  LIBERALITY  TO  WORKMEN     241 

two  stories  in  height,  containing  five  rooms,  besides 
cellar  and  pantry ;  a  large  number  have  seven  rooms 
and  a  bathroom.  The  rentals  "  are  a  little  higher 
for  the  same  number  of  rooms  than  in  Chicago ;  but 
in  Chicago  the  tenement  would  be  in  a  narrow  street 
or  alley,  while  in  Pullman  it  is  on  a  broad  avenue, 
where  no  garbage  is  allowed  to  collect,  where  all 
houses  have  a  back-street  entrance,  where  the  sewage 
arrives  at  a  farm  in  three  hours'  time  from  its  being 
deposited,  and  where  beauty,  order  and  cleanliness  pre- 
vail and  fresh  air  abounds."  When  these  advantages 
are  considered,  "  the  rent  rates  are  in  reality  much 
lower."  ^ 

Pullman  had  8,513  inhabitants  on  September  30, 

1884,  and  14,000  in  1894,  half  of  whom  were  born 
in  the  United  States  :  in  1884  some  3,000  workmen 
were  employed  in  the  car  works,  and  another  thou- 
sand in  related  industries  in  the  brick  yards,  the  ice 
business  and  the  carpenter  shop ;  in  1893  the  whole 
number  was  6,324 ;  the  great  company  laundry  em- 
ploys women.  Wages,  which  reached  a  total  of  more 
than  seven  million  dollars  in  1893,  have  been  "some- 
what higher  than  those  paid  for  like  work  in  other 

^  See  the  Sixteenth  Annual  Report  of  the  Bureau  of  Statistics  of 
Labor  of  Massachusetts,  dated  in  August,  1885.  Part  I.  of  this  Report, 
devoted  to  Pullman,  was  based  upon  a  three  days'  study  of  the  place, 
in  September,  1884,  by  thirteen  representatives  of  labor  bureaus  of  aa 
many  States,  with  the  present  U.  S.  Commissioner  of  Labor  at  their 
head.  The  report  was  signed  by  the  thirteen  gentlemen,  and  pub- 
lished in  the  reports  of  their  States  for  1885.  It  is  the  most  judicial 
statement  yet  made  concerning  Pullman,  and  I  have  quoted  from  it 
freely  as  to  conditions  in  1884.     In  Harper^  Magazine  for  February, 

1885,  Professor  R.  T.  Ely  published  the  results  of  his  private  investi- 
gation. The  article,  which  is  illustrated,  is  somewhat  less  laudatory 
of  the  company.  Professor  Ely  speaks  of  rents  as  averaging  about 
three  fifths  of  those  in  Chicago. 


242  A  DIVIDEND  TO  LABOR 

places,"  say  the  labor  commissioners :  "  the  same  as 
elsewhere,"  says  Professor  Ely.  There  are  no  taxes  to 
be  paid  by  the  tenant.  His  children  attend  school  in 
a  fine  building :  the  school  authorities  of  Hyde  Park 
have  charge  of  the  school  system.  The  public  library 
is  open  to  those  paying  a  fee  of  three  dollars  a  year  — 
an  objectionable  feature,  as  it  has  greatly  limited  the 
usefulness  of  the  institution  :  only  270  persons  used  it 
in  1893.  There  are  several  religious  organizations  in 
the  place,  but  only  one  church,  built  by  the  company, 
which  charges  a  rent  that  has,  a  large  part  of  the  time, 
been  found  too  high  for  the  societies  that  would  hke 
to  occupy  it :  the  company's  policy  here  seems  to  be 
a  mistaken  one,  and  it  has  been  charged  with  indiffer- 
ence in  regard  to  the  religious  life  of  its  employees. 
Two  churches  have  been  erected  just  over  the  track,  on 
leased  land.  "  There  is  but  little  crime  or  drunken- 
ness," one  officer  appointed  by  Hyde  Park  composing 
the  whole  police  force  in  1884,  and  making  but  fifteen 
arrests  in  two  years.  The  fire  department  is  sus- 
tained by  the  company.  "  There  is  no  pauperism  in 
Pullman."  "  The  company  pays  for  the  services  of  a 
physician  and  for  medicines  in  cases  of  accident,  and 
it  has  provided  a  gymnasium,  an  amphitheatre  for 
games  and  baseball  grounds."  The  beautiful  theatre, 
seating  800  persons,  is  rented  once  a  fortnight  or 
oftener  to  companies  from  Chicago  and  elsewhere, 
approved  by  the  PuHman  company.  The  death  rate 
in  Pullman  for  the  first  three  years  was  less  than  one 
third  the  average  for  American  cities,  and  has  con- 
tinued to  be  very  low.  The  moral  influence  of  the 
exceptional  surroundings  has  been  very  good.  Mr. 
Pullman  appreciated  profoundly  "  the  commercial 
value  of  beauty,"  as  Professor  Ely  says. 


AMERICAN  LIBERALITY  TO  WORKMEN     243 

Despite  the  many  advantages  which  Pulhnan  offers 
to  workmen  and  their  families,  and  the  fact  that 
all  went  well  until  1893,  the  great  strike  of  1894 
showed  that  the  body  of  employees  then  at  work  were 
not  on  the  whole  on  friendly  terms  with  the  company. 
That  this  was  due  in  large  measure  to  the  policy 
which  allowed  no  employee  to  buy  land  or  house  in 
the  place  (though  he  could  do  so  not  far  away,  with 
financial  encouragement  from  the  company  and  from 
a  savings-bank  from  which  deposits  can  be  at  once 
withdrawn)  ^  seems  to  be  generally  admitted.^  It  was 
supposed  in  the  earlier  days  of  the  place  to  be  a  tem- 
porary policy  only,  but  the  company  defended  its  plan 
in  1894  as  the  best,  and  it  has  not  modified  the  scheme 
since.  Charges  of  favoritism  and  nepotism  in  the  ad- 
ministration have  been  made ;  but  the  absence  of  an 
independent  newspaper  in  the  place  has  been  a  more 
obvious  defect.^  A  recent  judicial  decision  has  this 
year  denied  the  legal  right  of  the  Pullman  company 
to  build  and  maintain  such  an  industrial  community 
under  the  terms  of  its  charter,  and  its  future  policy  is 
therefore  a  subject  of  much  interest.  Whatever  this 
may  be,  the  disinterested  observer  cannot  fail  to  join 
with  the  labor  commissioners  of  1884,  in  their  praisfe 

1  On  July  1,  1893,  there  was  on  deposit  in  this  bank  $582,380,  to 
the  credit  of  2,425  employees. 

2  Rents  at  Pullman  take  up  a  large  percentage  of  the  workman's 
wages,  from  20  to  33  per  cent.,  it  has  been  stated,  and  were  not  re- 
duced when  wages  were  lowered.  Of  2,246  Pullman  workers  living 
on  the  borders  of  the  town,  about  1,000  were  said  to  own  their  homes 
in  1894. 

*  The  policy  of  the  company  toward  trade-unions  was  one  of  non- 
interference previous  to  the  strike  ;  since  then  it  has  insisted  that  its 
employees  shall  not  belong  to  the  American  Railway  Union,  which 
the  men  joined  extensively  in  1893-94. 


244  A  DIVIDEND  TO  LABOR 

for  the  large-mindedness  with  which  this  model  work- 
man's town  was  projected,  and  the  thoroughness  with 
which  every  physical  detail  has  been  worked  out :  the 
company  might  learn  much  from  experience  concern- 
ing the  moral  details.^ 

One  of  the  most  interesting  of  industries  to  the 
general  observer  is  paper-making.  In  its  higher  grades 
—  the  manufacture  of  fine  writing-paper  and  bank- 
note paper  —  it  becomes  an  almost  aristocratic  in- 
dustry through  the  extreme  neatness  and  refinement 
with  which  most  of  the  business  can  be  carried  on :  a 
large  part  of  the  factory  can  be  kept  almost  spotlessly 
clean,  and  the  necessary  littering  by  waste  material  is 
hardly  worse  than  that  of  a  private  office.  Certamly 
the  manufacture  as  conducted  by  the  Cranes,  at  Dalton, 
Mass.,  has  an  attractive  aspect,  and  its  surroundings 
are  such  as  to  justify  enthusiasm  in  a  lover  of  the 
picturesque.  It  is  another  instance  of  an  industry 
carried  on  through  three  successive  generations  by  the 
same  family,  who  have  wisely  and  happily  continued  to 
live  where  their  fortune  is  made.  Dalton  is  one  of  the 
most  beautiful  of  many  beautiful  towns  in  Berkshire 
County,  elevated  about  1,300  feet  above  the  sea  level: 
its  population  of  some  3,000  persons  (in  1890)  lives 
mainly  scattered  on  one  long  street. 

A  ride  of  five  miles  from  Pittsfield,  in  a  trolley  car, 
through  a  picturesque  country,  environed  with  hills, 
brings  one  to  the  first  of  the  four  Crane  miUs,  by  the 
roadside  :  this  is  devoted  to  the  manufacture  of  paper 
for  United  States  government  bonds  and  bank-notes. 
The  trolley  car  soon  leaves  the  highway  and  descends 

^  "  No  paternalism  has  ever  been  in  the  plan,"  said  Vice-President 
Wickes,  in  1894. 


AMERICAN  LIBERALITY  TO   WORKMEN     245 

to  the  bank  of  the  clear,  rushing  stream  (a  branch  of 
the  Housatonic)  which  furnishes  the  water-power  for 
most  of  the  industries  of  Dalton.  It  was  this  stream 
which  captivated  the  eye  and  the  judgment  of  the 
young  paper-maker,  Zenas  Crane,  in  1799,  when  he 
was  seeking  a  site  for  a  mill  of  his  own,  leaving  his 
brother  in  eastern  Massachusetts,  with  whom  he  had 
been  connected.  This  "  pioneer  of  paper-making  in 
western  Massachusetts "  (now  a  great  industry  in 
the  Connecticut  Valley,  as  well  as  among  the  Berk- 
shire hUls)  found  here  abundance  of  water-power, 
easy  of  control,  and  very  pure.  From  the  country 
and  from  Albany,  thirty  miles  distant,  he  could  pro- 
cure the  linen  rags  (the  only  raw  material  then  used 
for  pulp :  it  is  still  rags  only  that  are  used  to-day,  as 
the  company  make  no  cheap  papers)  :  and  the  same 
population  would  supply  a  market  for  his  product. 
First  the  private  "  post-riders "  and  then  traveling 
tin  peddlers  collected  rags  for  this  mill  from  women 
who  had  the  good  of  their  country  and  the  interests 
of  their  own  families  at  heart  (the  patriotic  advertise- 
ment so  called  upon  them  to  save  rags  and  encourage 
American  manufactories).  The  "  Pioneer  "  mill,  with 
a  single  vat,  turned  out  a  hundred  pounds  of  paper 
each  day :  it  was  a  hand  manufacture  for  thirty  years. 
Seven  employees  worked  for  modest  wages  (as  they 
would  now  appear  to  be)  under  Mr.  Crane's  superin- 
tendence. The  simplicity  and  democratic  nature  of 
labor  relations  in  those  days  were  great.  The  paper 
manufacture  at  Dalton  has  developed  greatly :  admir- 
able machinery  has  taken  the  place  of  much  of  the 
hand  labor,  so  that  the  160  men,  women  and  children 
now  employed  turn  out  an  immense  product,  compared 


246  A  DIVIDEND   TO  LABOR 

with  those  earlier  days :  wages  have  risen  as  well  as 
profits,  but  the  kindly  spirit  of  the  older  days  has 
continued,  and  the  prosperity  of  the  Crane  family  has 
been  finely  reflected  in  the  common  life  of  the  town. 

The  second  mill,  on  the  line  from  Pittsfield,  manu- 
factures fine  note  paper :  it  is  a  plain  brick  structure 
with  the  Housatonic  at  its  back,  and  in  front  a  rural 
scene  of  park-like  style,  unspoiled  by  fences.  First 
one  sees,  near  by,  a  few  cottages,  houses  belonging  to 
the  Cranes  which  they  have  erected  for  their  employees 
(these  are  rented,  but  not  sold).  A  neat  little  wooden 
building  at  the  first  comer  is  the  former  library  for 
the  works,  now  superseded  by  the  town  library.  In 
one  direction  are  a  few  more  houses  of  the  workers. 
In  others  lie  the  various  homes  of  the  Cranes  of  the 
second  and  third  generations.  Directly  opposite  is  the 
noble  brown-stone  mansion  of  the  present  Mr.  Zenas 
Crane,  with  its  beautiful  grounds,  its  conservatory, 
its  tennis  court  surrounded  by  a  vine-covered  trellis, 
and  its  pretty  pond  —  all  in  the  near  neighborhood 
of  the  mill.  A  large  number  of  the  employees  live  on 
the  other  side  of  the  stream,  in  homes  of  their  own. 
As  we  ascend  the  watercourse,  the  valley  widens  to 
contain  two  considerable  ponds  surrounded  by  wide 
expanses  of  turf.  Two  larger  mills,  the  new  Pioneer 
(a  model  of  factory  construction)  and  that  where  Old 
Berkshire  paper  is  made,  are  situated  in  this  valley. 
To  the  left  and  the  right,  on  two  converging  streets 
that  run  from  Crane ville  to  the  centre  of  the  town 
are  the  homes  of  other  members  of  the  Crane  family, 
including  the  present  lieutenant-governor  of  Mas- 
sachusetts, Mr.  W.  Murray  Crane,  the  best  known 
member   of    the   several   corporations   which,   under 


AMERICAN  LIBERALITY  TO   WORKMEN     247 

various  names,  but  with  an  identity  of  interest,  man- 
ufacture paper  in  the  several  mills. 

Where  the  main  street  attains  its  highest  level,  we 
see  on  the  south  side  a  handsome  stone  structure 
which  cost  $75,000,  the  gift  of  the  Crane  family  to 
their  native  town.  It  is  a  happy  combination  of  opera 
house,  town  hall  and  library.  The  large  audience 
hall  upstairs  is  suited  to  the  size  of  the  town,  and  is 
admirably  appointed:  below  it  is  a  plainer  hall  for 
ordinary  town  meetings :  on  the  same  level  with  this 
hall  is  the  town  lockup,  while  on  the  ground  floor  is 
the  selectmen's  room  and  the  library  and  reading- 
room.  Near  by  is  a  fine  stone  church,  a  memorial 
raised  to  the  former  Cranes  by  the  present  bearers  of 
the  name.  Dalton  impresses  the  visitor  as  a  singu- 
larly finished  town,  in  which  the  generosity  of  its  lead- 
ing family  has  not  had  the  effect  of  pauperizing  the 
municipality.  On  the  contrary,  an  excellent  high 
school  building,  roads  in  the  best  condition,  and  a 
very  general  air  of  comfort  and  carefulness  about  the 
houses  and  grounds  show  that  this  generosity  is  appre- 
ciated, and  that  the  effort  is  to  make  the  village  thor- 
oughly attractive.  At  the  other  end  are  the  mills  of 
another  corporation :  the  lack  of  any  notable  gener- 
osity toward  the  operatives  or  the  town  on  its  part  may 
be  responsible  for  the  httle  that  one  would  like  to  see 
amended  in  this  quarter  of  the  place.  So  far  as  the 
influence  of  the  Crane  family  has  extended,  it  has  had 
the  happiest  effect  upon  the  life  of  Dalton,  and  has 
made  it  a  model  industrial  community. 

The  great  paper  mills  of  S.  D.  Warren  and  Com- 
pany, at  Cumberland  Mills,  Maine,  a  few  miles  out 
from  Portland,  manufacture  from  fifty  to  sixty  tons  of 


248  A  DIVIDEND   TO  LABOR 

paper  a  day,  when  miming  at  full  speed,  and  employ 
about  1,000  persons.  When  the  business  began  the 
firm  had  to  erect  houses  for  its  force,  as  there  was  not 
a  sufficient  number  near  by.  The  low  rents  originally 
fixed  were  raised  as  the  place  grew  in  population,  in 
order  to  make  real  wages  uniform  to  all  the  em- 
ployees, whether  tenants  of  the  company  or  not ;  and 
rents  now  stand  at  five  per  cent,  of  the  actual  value  of 
the  house  (the  land  is  not  taken  into  account,  as  it 
was  bought  cheaply  long  ago),  —  taxes,  insurance  and 
water  rates  being  added.  Taxes  are  included  as  "  a 
measure  of  security  to  the  company,  because  it  makes 
tenants  more  careful  in  voting  for  measures  which 
might  influence  the  tax  rates."  Dr.  Gould,  from 
whom  I  quote  these  words,  ranks  the  later  houses 
built  by  the  company  "among  the  most  tasteful,  at- 
tractive and  conveniently  arranged  dwellings  to  be 
found  anywhere."  While  the  company  receives  a 
good  interest  on  its  original  investment  (the  building 
expenses  have  been  about  $125,000),  the  rent  charged 
for  a  $1,500  house,  $9  a  month,  is  25  per  cent,  less 
than  would  be  charged  by  other  landlords.  The  com- 
pany owns  a  hundred  houses  of  various  styles.  Most 
of  the  employees  (some  400  families)  live  in  houses  of 
their  own ;  a  large  part  of  these  formerly  occupied 
company  houses ;  the  company  does  not  sell  its  dwell- 
ings, the  principal  reason  given  being  that  it  may  some 
time  need  the  land  for  other  purposes.  It  is  easy 
for  a  family  to  save  enough  to  make  it  safe  to  invest 
in  a  home,  as  every  member  of  it  old  enough  to  work 
can  find  employment,  and  the  company  gives  the  pre- 
ference to  young  persons  who  help  their  parents.  "  A 
man  earning  twelve  dollars  a  week  (as  more  than  one 


AMERICAN  LIBERALITY  TO  WORKMEN     249 

third  of  the  men  do)  may,  by  strict  economy,  come  into 
possession  of  his  own  home  at  Cumberland  Mills." 

The  free  library  and  reading-room  maintained  by 
the  company  for  the  benefit  of  the  employees  is  on  the 
floor  above  the  offices  —  an  attractive  room  contain- 
ing over  4,000  volumes  and  the  leading  magazines  of 
the  day  and  scientific  and  technical  journals.  A  lit- 
erary society  of  the  women  workers  meets  regularly  in 
this  library.  The  company  laid  out  some  f5,000  on 
the  library  originally,  and  pays  the  annual  expenses, 
some  $300.1  j^  owns  a  large  hall  in  the  town,  which 
cost  about  ilO,000,  and  it  lets  this,  for  the  moderate 
rentals  of  $400  a  year,  for  lodge  and  society  gather- 
ings. For  several  years  the  company  also  practiced  a 
plan  of  profit  sharing,  which  lapsed  for  the  sufficient 
reason  that  profits  to  warrant  an  appreciable  dividend 
to  the  force  were  not  made. 

Two  large  lumber  firms,  one  in  New  Brunswick  and  the 
other  in  Wisconsin,  while  they  do  not  maintain  institutions 
especially  for  the  benefit  of  their  employees,  yet  greatly 
resemble  such  families  as  the  Fairbankses  and  the  Ameses 
in  making  gifts  to  the  town,  the  population  of  which  con- 
sists mainly  of  their  employees,  past  or  present. 

The  Knapp,  Stout  «&  Co.  Company  employs  over 
1,000  men  in  the  manufacture  of  lumber,  laths  and  shingles 
at  Menomonie,  Wis.,  some  sixty  miles  east  of  St.  Paul, 
on  the  Red  Cedar  River.  Its  operations  are  extensive,  at 
various  points  along  the  Mississippi,  giving  employment 
to  3,000  men  in  all :  the  company  is  now  fifty-four  years 
old  and  has  had  no  strikes  in  its  history.  The  vice-pre- 
sident of  the  company,  Mr.  Andrew  Tainter,  built  in  1890 
a  fine  stone  building  costing  $120,000,  in  memory  of  his 
daughter,  Mabel.  It  contains  a  large  auditorium,  amuse- 
^  There  is  also  a  public  library  in  the  town. 


250  A  DIVIDEND  TO  LABOR 

ment  and  class  rooms,  G.  A.  R.  and  club  rooms,  and  a  free 
library  of  several  thousand  volumes  (the  city  has  also  a 
public  library)  —  all  supported  by  the  donor.  The  trustees 
of  the  Mabel  Tainter  Library,  Literary  and  Educational 
Society  hold  the  building  for  general  educational  purposes, 
and  especially  for  the  Unitarian  Church,  for  its  religious, 
charitable  and  social  work.  Mr.  J.  H.  Stout,  a  son  of  the 
president  of  the  company,  has  built  and  equipped  a  manual 
training  school,  at  an  expense  of  $100,000,  now  controlled 
by  the  school  board.  Mr.  Stout  also  supports  two  kinder- 
gartens, the  main  one  in  the  basement  of  the  high  school. 
He  is  said  to  have  originated  the  system  of  traveling  libra- 
ries in  Wisconsin.  A  deceased  member  of  the  company 
gave  to  the  city  a  fine  central  park,  and  this  year  the  com- 
pany has  given  twelve  acres  of  woodland  along  the  river 
for  another  park. 

Marysville,  N.  B.,  two  and  a  half  miles  from  Fred- 
ericton,  on  the  Nashwaak  River,  is  a  kind  of  Canadian 
PuUman.  Mr.  Alexander  Gibson  is  the  owner  of  some 
170,000  acres  of  timber  land,  and  Marysville  has  been  built 
up  by  him  around  the  three  lumber-mills  and  the  cotton- 
mill  here  erected.  Over  700  men  are  employed  in  the  man- 
ufacture of  lumber,  laths  and  shingles,  and  some  500  per- 
sons  in  the  cotton-mill.  The  two  large  stores,  the  hotel,  the 
boarding-houses,  the  fifty  brick  tenements  and  the  large 
number  of  wooden  dwellings  are  the  property  of  Mr.  Gib- 
son. He  has  erected  a  Methodist  church,  costing  $50,000, 
all  the  expenses  of  which  he  meets,  and  fine  school  build- 
ings. The  public  hall  for  entertainments  and  general  meet- 
ings is  over  one  of  the  stores,  but  a  new  hall  and  a  public 
library  are  soon  to  be  built.  No  liquors  are  allowed  to  be 
sold,  and  the  population  is  said  to  be  better  housed  than 
that  of  any  other  Canadian  factory  town. 

Rhode  Island,  says  Colonel  T.  W.  Higginson,  "  is 
the  only  State  in  the  Union  where  chief  justices  write 
poetry  and  manufacturers  treatises  on  the  freedom  of 


AMERICAN  LIBERALITY  TO   WORKMEN     251 

the  will."  The  manufacturer  intended  in  this  epigram 
was  Rowland  G.  Hazard,  born  in  Peace  Dale  (1,200 
inhabitants  in  1889),  a  village  of  South  Kingstown 
(in  which  Narragansett  Pier  is  another  settlement), 
in  1801.  The  year  before,  his  father,  Rowland 
Hazard,  established  on  the  Saugatucket  the  woolen 
business,  still  carried  on  by  the  family  in  the  fourth 
generation,  under  the  style  of  the  Peace  Dale  Manu- 
facturing Company.  R.  G.  Hazard  was  an  able 
man  of  business  as  well  as  a  metaphysician  highly 
respected  by  John  Stuart  Mill,  whose  doctrines  he 
criticised.^  To  him  and  to  his  son  Rowland  (the  son 
has  regularly  taken  the  grandfather's  name  in  the 
family  succession)  are  due  most  of  the  philanthropic 
features  which  have  given  Peace  Dale  a  wide  repute. 
Omitting  the  profit-sharing  experience  of  the  company, 
which  I  have  given  in  detail  elsewhere,^  I  will  mention 
the  other  weKare-institutions  for  the  450  employees. 

The  Peace  Dale  company  has  built  a  number  of 
single  houses  for  its  men  which  were  sold  on  easy 
terms.  The  Hazard  Memorial  Hall  brings  Peace  Dale 
into  line  with  the  five  New  England  manufacturing 
towns  already  described  in  this  chapter  —  instances 
of  the  long  continuance  of  a  business  in  one  family, 
of  which  our  future  history  will  doubtless  have  many 
illustrations.  The  hall  was  dedicated  in  1891  to  the 
memory  of  R.  G.  Hazard,  who  died  three  years  before  : 
centrally  situated  and  a  very  pleasing  specimen  of 
village  architecture,  it  contains  a  music  hall  upstairs, 

^  See  The  Works  of  R.  G.  Hazard,  in  four  volumes,  edited  by  his 
granddaughter  Caroline  Hazard,  now  president  of  Wellesley  College. 

'■*  The  second  Rowland  Hazard  established  profit  sharing  in  the 
mills  in  1878 :  see  Profit  Sharing,  pp.  296-300. 


262  A  DIVIDEND   TO  LABOR 

seating  600  persons.  Here  the  Narragansett  Choral 
Society  of  Peace  Dale  (75  members)  gives  three  or 
four  concerts  each  year  and  holds  a  festival  in  the 
spring,  when  it  renders  such  works  as  "Elijah," 
"Stabat  Mater,"  "The  Creation,"  or  Sidlivan's 
"  Golden  Legend."  It  has  the  reputation  of  being 
the  best  drilled  chorus  but  one  in  the  State.  Its 
director  comes  from  Providence  for  the  weekly  re- 
hearsals, from  the  beginning  of  October  to  the  end  of 
May.  The  library  below,  open  every  day,  has  an  ex- 
cellent collection  of  6,800  books,  with  some  1,200 
card-holders;  in  1896,  12,038  volumes  were  taken  out 
by  7,603  readers.  There  was  a  library  in  the  place 
as  far  back  as  1855  :  it  was  made  free  and  public  in 
1875,  and  it  receives  flOO  yearly  under  the  State 
law,  for  the  purchase  of  books,  in  addition  to  its 
other  income.  It  supplies  seventeen  villages  and 
neighborhoods  in  the  large  territory  of  South  Kings- 
town. The  hall  has  a  room  which  is  the  headquarters 
of  the  town  "  circles  "  of  King's  Daughters,  where  a 
sewing-school  is  kept  up,  and  a  "  miniature  hospital " 
—  a  collection  of  appliances  for  the  sick-room,  which 
are  loaned  free. 

The  modest  Town  Hall  to  the  south  was  the  gift  of 
R.  G.  Hazard,  in  1877.  Rowland  Hazard  designed 
and  built  the  "  model  village  church,"  seating  some 
600  persons,  with  its  Margaret  Chapel,  a  memorial  to 
his  wife.  The  company  once  had  a  system  of  public 
gardens  which  it  abandoned.  The  fine  grounds  of 
Oakwoods  and  The  Acorns,  the  family  residences,  are 
near  the  factory  and  open  to  all :  Peace  Dale  offers 
another  happy  instance  of  the  employer's  family  living 
in  close  touch  with  the  industry. 


AMERICAN  LIBERALITY  TO  WORKMEN     253 

The  Merrimac  Manufacturing  Company,  Lowell, 
Mass.,  has  built  206  plain  but  convenient  tenements,  con- 
taining from  four  to  ten  rooms  each.  The  value  of  the 
land  and  buildings  is  estimated  at  $664,500.  The  average 
net  profit  has  been  about  2.3  per  cent.,  not  deducting  re- 
pairs :  the  taxes,  amounting  to  some  $11,000,  are  paid  by 
the  corporation.  In  the  more  recent  houses  rents  are  from 
15  to  20  per  cent,  lower  than  for  similar  accommodations 
near  by  :  the  wage-earner  spends  20  per  cent,  of  his  income 
on  rent.  The  company  owns  and  rents  boarding-houses, 
fixing  the  rates,  which  are  very  moderate.  "  The  girls  pay 
$1.75  per  week,  and  the  company  supplements  this  by 
thirty  cents  in  each  case  where  the  operative  boards  at  one 
of  its  houses.  In  this  way  the  corporation  pays  out  $3,000 
a  year  in  bounties.  .  .  .  The  results  have  been  profitable  " 
on  account  of  the  contentment  of  the  working  force.^ 

At  Lawrence,  Mass.,  various  textile  corporations  let 
their  boarding-houses  at  nominal  rentals  so  that  lower  rates 
of  board  can  be  afforded.  Tenants  of  the  companies  are 
not  pressed  for  rent  when  work  is  slack.  One  company 
remits  rent  entirely  when  the  mill  is  not  running.  Provi- 
sion was  formerly  made  for  libraries  and  lecture  courses  ; 
but  the  D.  A.  White  fund  for  these  purposes  and  the  fine 
library  erected  by  the  White  trustees,  have  rendered  such 
provision  unnecessary,  as  is  also  the  case  with  respect  to 
relief  and  housing.  The  salary  of  the  City  Missionary  is 
largely  paid  by  the  corporations,  and  some  support  free  beds 
in  the  hospital. 

The  Howland  Mills  Corporation,  of  New  Bedford, 
Mass.,  has  built  fifty  houses,  unusually  pleasing  in  style 
and  convenient  in  arrangement,  for  its  employees,  at  a  total 
cost  of  $104,000.  The  rent  averages  about  15  per  cent,  on 
wages,  and  3  per  cent,  on  the  investment.  A  men's  board- 
ing-house for  twenty-four  persons,  is  conducted  by  a  person 
chosen  by  the  company,  which  charges  him  no  rent. 

1  Gould,  Rqxtrt,  p.  335. 


254  A  DIVIDEND  TO  LABOR 

Whatever  one  may  say  in  praise  of  other  American 
manufactiuing  villages  where  the  conditions  of  the 
workman's  life,  in  the  mills  and  in  the  home,  are 
.unusually  good,  it  is  difficult  to  resist  the  convic- 
tion that  the  nearest  approach  to  the  ideal  has  been 
made  at  South  Manchester,  Conn.,  by  the  Cheney 
Brothers.  Various  causes  have  concurred  to  give 
these  noted  silk  works  this  preeminence.  The  Cheney 
family  have  resided  in  Manchester  for  more  than  a 
hundred  years.  The  story  of  the  triumphs  of  the 
American  silk  industry  is  largely  the  tale  of  their 
inventions  and  successes.  Among  the  several  hundred 
manufacturers  of  silk  in  this  country,  they  are  the 
largest,  employing  2,500  hands  in  their  great  and 
admirable  buildings.  They  were  the  owners  of  a  large 
tract  of  land  (over  1,000  acres),  and  could  locate  the 
mills  in  scenery  of  much  natural  and  acquired  beauty. 
As  the  virtual  makers  of  the  village  of  South  Man- 
chester, opposite  the  park,  they  could  keep  a  generous 
and  wise  oversight  of  its  growth.  While  in  no  sense 
engaged  in  business  for  philanthropy,  they  have  always 
been  mindful  of  their  responsibilities  as  employers  of 
great  numbers  of  men.  They  have  given  the  workman 
mills  in  which  all  the  conditions  of  health  and  safety 
are  observed ;  and  a  home  and  community  life  distin- 
guished by  comfort,  order,  beauty  and  intelligence  are 
placed  within  reach  of  all.  "  An  ideal  manufacturing 
village  "  and  "  a  terrestrial  paradise  "  are  terms  which 
Hon.  S.  J.  Barrows  of  Massachusetts  applied  to  the 
place,  in  the  "  Atlantic  "  some  twenty  years  ago,  in 
an  article  on  "  The  Silk  Industry  in  America." 

Manchester  is  reached  by  the  New  England  Rail- 
road, which  runs  through  the  northerly  part  of  the 


AMERICAN  LIBERALITY  TO   WORKMEN     255 

town,  or  by  trolley  car  from  Hartford,  eight  miles 
west.  Various  manufactures  are  located  in  the  town, 
which  had  a  population  in  1890  of  8,222  persons, 
but  the  leading  industry  is  the  silk-mills.  The  town 
enjoys  all  the  conveniences  of  civilization,  in  the  shape 
of  good  water  and  sewage  systems,  the  electric  light 
and  the  electric  and  steam  railways,  and  a  fine  school 
system.  Other  parts  are  attractive  and  well  kept, 
but  South  Manchester  is  the  largest  and  most  im- 
portant quarter.  One  may  step  into  the  steam  car, 
operated  by  the  Cheney  company,  that  runs  from  Man- 
chester to  South  Manchester,  and  he  will  then  make 
his  entrance  by  rail  into  the  very  centre  of  the  silk 
works.  Alighting  at  the  little  station,  the  visitor  finds 
himself  in  a  park-like  neighborhood.  He  has  just 
passed  on  his  left  the  long  front  of  the  new  mills  for 
weaving  and  spinning,  and  he  sees  in  front,  in  the  near 
distance,  the  outlines  of  the  older  mills  and  the  office 
building.  Across  the  street  is  the  Cheney  Hall,  but 
no  hotel  or  large  boarding-house  is  visible.  A  few 
cottages  of  simple  style,  but  surrounded  with  vines  and 
flowers,  are  dotted  here  and  there  along  the  main  and 
side  streets,  and  others  of  later  date  and  more  am- 
bitious construction  appear  in  the  distance.  Walking 
a  few  rods  east  or  south,  one  sees,  looking  through  the 
trees  and  over  the  wide  lawns,  the  homes  of  the  vari- 
ous branches  of  the  Cheney  family :  there  are  fourteen 
families  of  the  name  residing  here. 

The  usual  accessories  of  manufacturing  are  absent, 
—  the  dirt,  the  smoke,  the  roar  heard  at  a  long  dis- 
tance. No  textile  industry  is  noiseless,  of  course ;  not 
even  its  most  refined  department,  the  making  of  silks, 
can  be  carried  on  in  quiet,  within  the  walls.     But 


256  A  DIVIDEND  TO  LABOR 

these  mills  are  as  if  set  in  large  private  grounds,  and 
every  external  shows  the  greatest  pains  taken  to  do 
away  with  the  repulsive  features  of  the  ordinary  fac- 
tory. Tending  a  great  variety  of  more  or  less  com- 
plicated machinery,  or  performing  the  processes  where 
hand  labor  is  required,  a  large  force  of  2,500  persons 
of  both  sexes  may  be  seen,  healthy,  cheerful  and  con- 
tented looking  to  a  degree.  Bicycles  stand  in  long 
array  in  the  vestibules,  some  of  them  probably  taking 
the  place  of  those  vehicles  for  the  employees,  living 
at  a  distance,  which  used  to  astonish  visitors  from 
abroad,  quite  unaccustomed  to  see  operatives  "  riding 
home  from  work  in  their  own  carriages." 

The  company  exercises  no  constraint  upon  its  em- 
ployees as  to  their  residence,  and  many  of  the  800 
houses  of  the  employees  stand  outside  of  the  grounds, 
in  the  thrifty  quarter  on  the  east.  The  company 
encourages  the  ownership  of  homes,  but  prohibits 
liquor  selling  and  the  keeping  of  nuisances.  The 
houses  are  for  the  most  part  single  cottages  with  gar- 
dens. There  is  a  great  variety  of  styles,  showing  indi- 
vidual tastes :  the  only  exception  being  the  older  and 
smaller  houses  before  noted.  Garden  plots  are  pro- 
vided for  every  house,  and  all  the  homes  show  an 
external  harmony  with  the  beautifid  surroundings. 
No  shiftless  tenants  are  in  evidence. 

The  Cheney  Brothers  bxiilt  in  1860  the  simple 
structure  of  brick  which  contains  the  fine  and  large 
Cheney  Hall,  and  smaller  rooms  below  for  lodge  meet- 
ings. In  the  main  hall  lectures  and  reputable  enter- 
tainments of  all  kinds  are  given,  no  charge  being 
made  for  the  use  of  it,  and  it  is  much  used.  Formerly 
unsectarian  services  and  a  Sunday-school  were  main- 


AMERICAN  LIBERALITY  TO  WORKMEN     257 

tained  on  Sunday  afternoon  :  there  is  now  a  consider- 
able number  of  churches  in  Manchester  and  South 
Manchester,  which  are  well  attended. 

The  schools  of  South  Manchester  are  unsurpassed 
in  the  State,  and  this  fact  is  due  mainly  to  the  en- 
lightened generosity  of  the  Cheney  Brothers.  This 
ninth  school  district  contained,  in  1894,  1,003  schol- 
ars. They  attend  lessons  in  a  large  schoolhouse  of 
wood,  containing  thirty-five  rooms.  The  interior  is 
finished  in  wood,  the  ceilings  as  well  as  the  side  walls. 
Each  room  is  intended  for  twenty-five  scholars,  or 
fewer,  with  single  desks,  and  each  has  light  on  two 
sides.  It  is  also  provided  with  a  collection  of  books 
for  reading  and  reference,  —  in  the  whole  building 
there  are  3,500  volumes :  the  number  of  text-books  is 
small.  The  school  is  connected  with  the  State  Normal 
School  at  New  Britain,  five  teachers  out  of  every  six 
coming  from  there.  These  student  teachers  are  super- 
vised by  the  permanent  teachers,  and  the  results  show 
a  high  level  of  instruction.  There  is  a  kindergarten 
department  for  children  over  three  years  of  age,  con- 
ducted according  to  the  most  approved  methods :  the 
little  ones  are  introduced  to  natural  science  and  good 
literature,  in  a  pleasing  succession.  They  learn  to 
read  and  write  before  leaving  this  department,  and 
then  go  on  to  the  upper  grades,  which  include  high 
school  branches.  Manual  training  is  a  feature,  with  a 
workshop  and  instruction  in  woodwork  and  mechan- 
ical drawing.  Another  feature  is  the  gymnasium  on 
the  upper  floor ;  gymnastics  are  a  part  of  the  regular 
daily  programme.  Each  girl  over  eleven  has  a  hun- 
dred lessons  in  cooking ;  the  course  includes  instruction 
in  buying  material.  In  the  high  school  there  were 
six  teachers  and  one  hundred  pupils  in  1895. 


258  A  DIVIDEND  TO  LABOR 

From  the  kindergarten  to  the  students  preparing 
for  college,  the  instruction  in  natural  science  is  con- 
tinuous. The  emphasis  laid  upon  literature  and 
manual  training  is  in  accordance  with  the  best  educa- 
tional thought  of  the  day.  The  work  of  the  schools  is 
continued  and  supplemented  for  the  community  by 
the  free  public  library,  —  like  the  schoolhouse,  a  gift 
of  the  Cheney  Brothers  ;  it  is  open  every  afternoon 
from  three  o'clock  to  six,  Sundays  included. 

In  that  excellent  little  book,  "  Old- World  Questions 
and  New- World  Answers,"  published  in  1884,  Mr. 
Daniel  Pidgeon,  F.  G.  S.,  ranked  the  Willimantic 
(Conn.)  Thread  Company  as  the  "  one  estabhshment 
which,  more  than  any  other  in  America,  encourages 
hope  for  the  future  of  labor."  He  went  on  to  describe 
various  uncommon  features  which  distinguished  from 
other  mills  these  factories  where  some  millions  of 
miles  of  cotton  thread  are  manufactured  each  year,  — 
the  cooperative  store,  the  flowers  in  the  great  spin- 
ning-room of  the  new  mill  No.  4,  the  dining-room 
with  its  low-price  dinners  and  its  hght  refreshment 
for  the  younger  help  at  nine  o'clock  in  the  morning, 
the  various  schools,  and  the  kindly  intercourse  of 
operatives  and  managers.  Colonel  W.  E.  Barrows, 
the  originator  of  these  features,  did  not  succeed  in 
permanently  converting  to  his  enhghtened  views  the 
majority  of  the  directors  of  the  company :  difficulties 
ensued  and  he  resigned  his  position.  The  visitor 
finds  that  the  aesthetic  features  of  the  mill  (in  so  far 
as  they  were  not  wrought  into  its  construction)  have 
disappeared  almost  entirely.  The  "  pockets  "  between 
the  piers  of  the  great  spinning-room  (a  room  nearly  a 
thousand  feet  long  and  two  hundred  feet  wide)  are  no 


AMERICAN  LIBERALITY  TO  WORKMEN    259 

longer  "filled  with  soil,  forming  great  flower-beds 
planted  with  climbers  .  .  .  together  with  geraniums, 
petunias  and  flowering  shrubs:"  only  a  few  large 
tropical  plants  lead  a  precarious  life  at  one  end  of  the 
building.  The  dining-room  is  appropriated  to  other 
uses.  The  cooperative  store  in  the  two  lower  stories 
of  Dunham  Hall  (the  library  building)  has  been  given 
up,  and  the  space  taken  by  the  counting-room  and 
purchasing  department  of  the  company. 

But  though  a  more  strictly  commercial  policy  has 
superseded,  wisely  or  unwisely,  the  original  and  attrac- 
tive work  of  Colonel  Barrows  (which  probably  had 
some  defects  of  its  own),  the  Willimantic  Thread  Mills 
still  deserve  to  be  ranked  high  among  the  manu- 
facturing establishments  of  the  country  for  the  ad- 
vantages enjoyed  by  the  employees.  These  number 
about  1,500  and  thepay-roU  amounts  to  some  $40,000 
a  week :  the  great  majority  of  the  hands  are  Irish, 
women  predominating.  The  "new  miU,"  built  by 
Colonel  Barrows,  is  an  immense  one-story  structure 
on  the  south  side  of  the  Willimantic  River,  which 
furnishes  the  water-power:  this  is  supplemented  by 
an  electric-power  plant.  The  motive  power  is  in  the 
basement,  and  the  main  floor,  with  its  fifty  thousand 
spindles,  is  firm  to  the  foot  of  the  operative.  The 
older  mills  of  granite,  six  stories  high,  are  on  the 
other  side  of  the  river  in  large  grassy  yards.  The 
older  tenements  of  the  company,  on  the  main  street 
near  the  older  mills,  with  two  rows  of  equal  length 
back  from,  and  parallel  with  this  one,  are  neat  and 
well  kept,  though  no  attempt  at  gardening  or  orna- 
ment is  visible. 

Off  from  South  Main  Street  (on  the  same  side  of 


260  A  DIVIDEND  TO  LABOR 

the  river  with  the  new  mill),  one  in  search  of  the  new 
tenements  built  by  Colonel  Barrows  is  attracted  by  a 
new  settlement  which  suggests  to  his  eye  a  much 
improved  tenement  quarter  with  a  large  measure  of 
individual  variation  in  styles.  Attractive  as  com- 
pared with  the  larger  part  of  the  older  town  (and 
Willimantic  is  an  attractive  place),  this  quarter,  which 
one  soon  learns  is  entirely  private  property,  yields  in 
interest  and  good  looks  to  the  Oakgrove  quarter  be- 
yond it.  Here  are  some  forty  cottages,  built  after 
four  types,  agreeably  intermingled,  which  present  a 
most  pleasing  ensemble.  One  type  is  located  on  a  lot 
of  10,500  square  feet :  the  house,  sitting  well  back 
from  the  street,  has  half  the  frontage  of  the  lot,  and 
occupies  little  more  than  a  tenth  of  its  area.  A  lawn, 
with  walks,  a  garden  and  a  clothes-yard  are  thus 
sufficiently  provided  for.  The  two-story  frame  build- 
ing contains  six  rooms  and  rents  for  il.93  a  week,  a 
sum  which  Dr.  E.  R.  L.  Gould  thinks  is  "  probably 
a  little  over  one  third  of  what  would  be  charged  for 
fairly  similar  accommodation  in  the  neighborhood. 
Smaller  houses  rent  for  from  il.62  to  $1.75  per 
week."  1 

The  company  gets  a  three  per  cent,  gross  interest 
on  its  investment  in  these  new  houses,  the  property 
being  estimated  at  $60,000  ;  the  rent  is  deducted 
from  wages.  A  sign  of  the  liberal  disposition  of  the 
company  is  the  fact,  noted  by  Dr.  Gould,  that  "  rents 
were  lowered  in  July,  1885,  in  consequence  of  a  re- 
duction of  wages.     The  old  rate  of  wages  was  subse- 

^  See,  for  full  particulars  of  construction  and  plans  and  views  of 
these  taking  cottages,  Dr.  Gould's  report  on  The  Housing  of  the  Work- 
ing People,  pp.  327,  328. 


AMERICAN  LIBERALITY  TO   WORKMEN     261 

quently  restored,  but  the  rents  were  not  advanced." 
These  cottages  form  the  most  attractive  group  of 
workmen's  houses  which  it  has  been  the  good  fortime 
of  the  writer  to  see;  there  are  others,  as  at  Wal- 
tham,  Mass.,  of  a  higher  grade,  but  there  is  nowhere 
a  more  pleasing  environment.  The  general  park-like 
arrangement  of  the  quarter,  the  vine-clad  porches,  the 
flower  and  vegetable  gardens,  the  oak  grove  on  one 
side  and  the  handsome  public  school  on  the  other,  give 
this  group  of  workmen's  houses  a  lasting  place  in  the 
memory  of  the  visitor,  as  a  proof  of  what  generosity 
and  good  taste  on  the  part  of  the  employer  can  do  to 
make  the  homes  of  working  people  healthful  and  beau- 
tiful. The  rental  of  such  a  picturesque  and  conven- 
ient home  requires  but  the  moderate  proportion  of  10 
to  12|^  per  cent,  of  the  workman's  wages. 

There  are  no  benefit  associations  among  the  Thread 
Company's  employees,  but  WiUimantic  is  weU  sup- 
phed  with  ordinary  savings-banjcs,  and  a  branch  of 
the  Connecticut  Cooperative  Savings  Society  pays  five 
per  cent,  on  deposits. 

Dunham  Hall,  the  tasteful  library  building,  con- 
tains in  its  upper  story  an  excellent  library  and  a 
reading-room  stocked  with  papers  and  magazines  :  the 
hours  are  from  12  m.  to  9  p.  m.  The  company  pays 
ten  dollars  a  week  in  salaries  on  account  of  the  hall, 
and  defrays  the  cost  of  heating  and  lighting  and 
of  new  books :  there  are  now  several  thousand  vol- 
umes. I  quote  elsewhere  in  this  book  Dr.  Gould's 
statement,  derived  from  the  present  management,  con- 
cerning two  or  three  "  paternal "  features  of  the  for- 
mer management  which  have  been  dropped :  they  were 
not  in  themselves  important  matters.     The  Williman- 


262  A   DIVIDEND   TO  LABOR 

tic  Linen  Thi-ead  Company  is  to-day  a  company  for 
tlie  enlightened  employer  to  take  example  from. 

The  Warner  Brothers  have  in  Bridgeport,  Conn., 
a  large  manufactory  of  corsets,  employing  about  a 
thousand  women.  On  the  opposite  corner  from  their 
factory  (Lafayette  and  Atlantic  streets),  the  firm  has 
erected  a  club-house  of  the  first  rank  for  beauty  and 
convenience.  It  was  opened  November  10,  1887,  by 
Mrs.  Grover  Cleveland.  The  Seaside  Institute,  as  it  is 
called  (it  is  two  or  three  blocks  from  the  fine  Seaside 
Park,  which  Mr.  Joel  Benton  calls  "  a  pleasure-ground 
nnequaled  by  anything  on  the  sea-line  from  New 
York  to  Newport  "),i  is  open  all  day  and  through  the 
evening :  it  is  a  brick  and  stone  building,  presenting 
a  striking  architectural  effect.  The  basement  is  a 
step  or  two  below  the  level  of  the  street :  there  are 
two  high-studded  stories  above,  and  a  half-story  under 
the  main  roof  :  the  circular  tower  on  the  comer  rises 
to  a  full  third  story.  The  Institute  was  built  without 
regard  to  expense,  in  the  most  thorough  manner.  The 
first  stimulus  to  the  erection  of  it  came  from  the 
Warner  Brothers'  perception  of  the  need  of  a  good, 
warm  lunch  for  their  employees.  This  need,  which  is 
one  felt  by  every  factory  operative,  was  especially 
perceptible  in  the  case  of  the  women  workers,  who 
constitute  the  great  majority  of  the  force  here.  In 
the  basement  of  the  Institute,  therefore,  the  Warner 
Brothers  located  a  lunch-room  and  refectory  fitted  up 
with  every  convenience.  Here  at  the  usual  hours,  the 
employees  can  procure  at  cost  tea,  coffee  or  chocolate, 
sandwiches,  cake,  pie  and  other  eatables,  so  that  they 

1  See  Mr.  Benton's  interesting  article  in  the  American  Magazine 
for  March,  1888. 


AMERICAN  LIBERALITY  TO   WORKMEN     263 

are  under  no  necessity  of  bringing  a  lunch-basket  in 
the  morning.  The  restaurant  is  now  open  to  the  gen- 
eral public. 

The  entrance  hall,  reached  by  a  few  steps  from  the 
street,  has  the  dignity  and  finish  of  a  large  private 
mansion.  A  memorial  window  fronting  the  visitor 
commemorates  the  mother  of  the  founders  of  the  In- 
stitute —  a  most  appropriate  dedication.  (Elsewhere 
is  found  a  portrait  of  the  deceased  wife  of  Dr.  I. 
De  Ver  Warner,  who  took  a  deep  interest  in  this 
building.)  A  parlor  of  liberal  dimensions  and  hand- 
somely furnished  opens  from  the  hall  on  one  side. 
On  the  same  side  are  music  and  reception  rooms,  and 
toilet-rooms.  (The  six  bathtubs,  with  hot  and  cold 
water,  are  free  to  all  members  of  the  Institute.)  On 
the  right  is  a  very  attractive  reading-room  communi- 
cating with  the  library  (containing  some  4,000  vol- 
umes) in  the  rear.  In  connection  with  her  other 
duties,  the  librarian  conducts  classes  of  the  members 
in  English  Literature  and  Shakespeare,  and  there  are 
classes  in  music  :  a  nmnber  of  other  studies  have  been 
pursued,  such  as  shorthand  and  typewriting,  but  the 
list  varies  according  to  the  demand.  On  the  second 
floor  we  find  a  concert  hall,  seating  500  persons :  the 
stage  is  adapted  to  theatrical  purposes,  and  the  floor 
to  dancing.  Lectures  and  concerts  have  been  more 
or  less  regularly  given  in  this  haU  from  the  begin- 
ning :  but  the  "  Firemen's  Brigade,"  an  organiza- 
tion of  the  young  women  employees,  has  lately  been 
responsible  for  most  of  the  entertainment  offered. 
In  a  city  of  the  size  of  Bridgeport  the  employees  are 
not  of  course  dependent  upon  the  Institute  for  re- 
creation as  they  might  be  in  a  smaller  town.     In  this 


264  A   DIVIDEND  TO  LABOR 

direction  as  in  others  the  Warner  Brothers  have  been 
at  school  to  experience  —  a  teacher  whose  lessons  they 
willingly  accept.  At  the  opening  of  the  Institute  a 
number  of  sewing-machines  were  placed  in  a  room  on 
the  second  floor  for  the  use  of  the  employees  in  doing 
their  own  mending  and  sewing.  Sewing-machines  are 
now  so  common  that  few  of  the  girls  brought  any 
private  work  from  their  homes  or  boarding-places  to 
this  room  :  it  is  now  used  for  factory  purposes,  in 
time  of  pressure  ;  but  there  are  still  a  few  machines 
in  the  Institute  available  for  the  employees  who  wish 
to  use  them.  The  building  has  a  pool-room  well 
patronized,  and  a  number  of  rooms  in  the  third  story 
are  occupied  as  lodging-rooms  by  the  matron  and 
others. 

The  thoroughness  and  generosity  with  which  the 
Seaside  Institute  has  been  built  and  equipped  (at  a 
cost  of  some  $60,000)  are  evident  to  the  most  casual 
observer.  He  cannot  fail  to  remark  the  bright  and 
intelligent  looks  of  the  regiment  of  women  here  em- 
ployed (not  John  Knox's  "  Monstrous  Regiment "). 
They  do  not  maintain  any  benefit  association  (a 
direction  in  which  women  workers  need  to  advance), 
but  the  company  give  half  pay  (or  even  whole  pay 
in  extreme  cases)  to  sick  employees.  In  all  ways 
the  Warner  Brothers  show  a  high  conception  of  their 
responsibilities  as  employers  —  a  conception  of  which 
this  "  American  Palace  of  Dehght  "  (as  Mr.  Benton 
felicitously  calls  it)  is  the  chief  but  not  the  only  em- 
bodiment. 

One  who  walks  up  Shipman  Street  in  Newark, 
N.  J.,  from  the  troUey  hue  passes  some  small  tene- 
ments as  bad  for  their  size  as  any  to  be  found  in  New 


AMERICAN  LIBERALITY  TO   WORKMEN     265 

York,  and  two  or  three  uninviting  factories,  and  then 
sees  on  the  corner  of  another  square  a  large  four-story 
building  about  the  nature  of  which  he  may  be  a  little 
uncertain.  The  many  windows  are  provided  with 
plain  white  curtains,  looped  up  at  the  side,  but  there 
are  no  flowers  visible  in  them,  such  as  one  might  see 
in  a  hospital.  The  woodbine  covering  a  considerable 
part  of  the  street  front  would  indicate  that  the  build- 
ing is  not  a  public  school.  If  the  stranger  is  looking 
for  the  factory  where  the  Ferris  Brothers  Company 
manufacture  the  so-called  "  Common-Sense  Waist," 
he  will  conclude  at  once  that  this  is  the  factory  he  is 
in  search  of  —  the  curtains  taking  for  him  the  place 
of  a  sign.  He  steps  in  and  finds  before  him  an  in- 
terior marked  by  neatness  and  great  simplicity :  the 
office  is  a  plain  room  on  the  third  floor,  without 
elaborate  furnishings,  bringing  the  treasurer  and  the 
superintendent  in  easy  reach  of  the  great  body  of  the 
workers  on  that  floor,  the  one  above  and  the  one 
below. 

Nearly  500  women,  mostly  young  and  unmarried, 
and  a  few  men  make  up  the  working  force  :  there  are 
mothers  and  daughters,  working  side  by  side,  and 
earning  from  nine  to  fourteen  dollars  a  week  on  piece- 
work. The  visitor  who  is  sensitive  to  such  impres- 
sions, is  struck  by  the  air  of  good-will  and  good- 
fellowship  in  a  work  which  interests  all,  that  seems  to 
pervade  the  establishment.  All  know  the  assistant 
superintendent  pleasantly  and  are  known  by  him :  he 
has  a  pride  in  them  as  the  "  finest  body  of  women 
workers  to  be  found  in  the  country."  It  is  a  laudable 
chauvinism  which  the  Waltham  Watch  Company,  the 
Chicago    Telephone   Company,    the   National    Cash 


266  A   DIVIDEND   TO  LABOR 

Register  Company  or  the  Warner  Bi'others  might  also 
feel  I  There  is  room,  emotionally,  if  not  in  strict  logic, 
for  numerous  bodies  of  such  "  finest "  women  workers. 
The  friendly  spirit  in  the  establishment  is  explained 
when  one  learns  of  the  various  measures  which  the 
firm  takes  to  lighten  the  labors  of  its  employees  and 
to  show  its  sincere  interest  in  their  welfare. 

In  the  basement  one  finds  a  large  room  fitted  up 
with  conveniences  for  taking  the  lunch  which  a  large 
proportion  of  the  women  bring  with  them  in  the 
morning.  (A  number  buy  their  noonday  meal  at  the 
Young  Women's  Christian  Association  near  by :  and 
a  larger  number  have  time  to  go  to  their  homes  and 
back.)  A  number  of  girls  form  a  "  mess : "  each 
member  takes  her  weekly  turn  in  caring  for  the  table, 
and  washing  the  dishes.  At  a  quarter  before  twelve 
she  leaves  her  work,  to  set  the  table  from  the  locker 
provided  for  it,  and  to  get  for  it  the  supply  of  hot 
tea,  with  sugar  and  cream,  which  the  firm  provides. 
After  the  girls  have  eaten  their  lunches,^  they  repair, 
if  they  choose,  to  the  large  room  in  the  fourth  story 
devoted  to  recreation.  Here  are  to  be  found  the 
current  magazines  and  a  few  books  of  interest,  and  a 
pianoforte.  A  smooth  floor  invites  to  a  few  lively 
turns  before  work  begins  again.  On  each  floor  are 
two  baths  of  which  the  workers  avail  themselves  at 
pleasure,  at  any  time  during  the  day. 

As  the  firm  has  been  steadily  prosperous,  it  has 
pursued  a  very  liberal  policy  with  respect  to  former 
employees  who  wish  to  return,  wholly  or  partly,  to  its 
service.     It  stands  ready  to  take  them  back  at  any 

^  These  were  once  bought  from  one  source  for  fifteen  cents  each, 
but  the  present  system  is  more  satisfactory. 


AMERICAN  LIBERALITY  TO   WORKMEN     267 

time,  for  as  many  hours  a  day  as  they  are  able  to 
work ;  in  1898  this  liberality  was  especially  helpful 
to  the  wives  of  volimteer  soldiers  in  the  Cuban  war, 
who  had  formerly  been  in  the  factory,  but  had  left  it 
upon  marriage.  The  firm  displays  a  kindly  interest 
in  sick  employees :  it  has  established  for  them  two 
free  beds  in  a  Newark  hospital.  While  there  is  no 
regular  benefit  association  among  the  women,  cases  of 
need  are  frequently  provided  for  by  volimtary  weekly 
collections,  sometimes  to  the  extent  of  ten  dollars  a 
week  for  the  disabled  employee.  The  Ferris  Brothers 
send  a  large  number  of  their  help  on  a  two  weeks' 
vacation  to  the  seaside  cottage  which  they  own  at 
Long  Branch,  ten  going  at  a  time. 

These  various  measures  and  institutions  have  for 
their  natural  effect  the  procurement  for  the  firm  of  a 
high  grade  of  labor  and  the  solid  establishment  of  good- 
will between  them  and  all  their  employees. 

The  Edison  Electric  Illuminating  Company,  of 
New  York,  has,  since  1895,  paid  a  dividend  at  the 
hohday  season,  based  on  earnings.  "  After  deducting 
from  the  gross  returns  of  the  company  the  charges  for 
wages,  fuel,  depreciation,  etc.,  and  for  interest  at  five 
per  cent,  on  loan  and  share  capital,"  a  percentage 
upon  the  balance  equal  to  the  rate  of  dividend  paid  to 
stockholders  is  set  apart  for  the  Employees'  Benefit 
Fund.  This  sum  was  about  113,000  in  1896  and  1898, 
representing  a  six  per  cent,  dividend.  One  per  cent, 
on  yearly  wages  is  paid  to  men  who  have  done  continu- 
ously f aithfid  service  for  one  year :  2  per  cent,  to  those 
of  three  years'  service,  3  per  cent,  to  those  of  five, 
and  4  per  cent,  to  those  of  ten :  at  the  close  of  1898 
twenty-nine  men  had  been  in  service  over  ten  years. 


268  A  DIVIDEND  TO  LABOR 

and  222  men  over  five  years.  In  1898  fourteen  men 
enlisted  for  the  Spanish  war,  and  their  pay  was  con- 
tinued and  their  places  kept  open  for  them.  Nomina- 
tions for  a  Labor  Council  were  made  for  the  first  time 
in  1898  by  all  the  employees  who  had  served  a  fuU 
year,  and  the  council  was  appointed  from  the  number 
by  the  company.  During  the  year  many  of  the  sug- 
gestions made  from  the  various  sections  and  depart- 
ments for  increasing  the  safety,  comfort  or  convenience 
of  the  employees  were  found  practically  useful,  and 
were  adopted.  Other  subjects  of  administration  and 
labor  relations  were  profitably  discussed. 

The  Chicago  Telephone  Company  employs  some 
600  young  women,  of  whom  300  are  in  its  main  "ex- 
change "  on  Washington  Street.  The  company  meets 
the  needs  of  its  machinery  and  equipment  and  of  its 
workers  at  the  same  time  by  supplying  artificially  an 
even  temperature  and  pure  air  throughout  the  year, 
the  air  being  warmed  in  winter  and  cooled  in  summer. 
It  goes  beyond  this,  however,  in  providing  for  its 
"living  machinery,"  in  the  shape  of  the  intelligent 
and  alert  young  women  whom  the  business  demands, 
a  variety  of  conveniences  on  the  floor  below  the  ex- 
change. Here  are  a  parlor  and  reading-room,  a  large 
lunch-room,  toilet  arrangements,  and  a  matron  who 
keeps  a  careful  oversight  of  their  physical  condition. 
A  relief  system  provides  against  undue  strain.  The 
result  of  these  measures  and  the  general  good  treat- 
ment is  that  places  are  eagerly  sought  for  and  long 
retained,  marriage  having  a  much  less  disturbing 
effect  on  the  business  than  is  usually  the  case  where 
women  are  employed. 

The  several  hundred  young  women  in  the  employ 


AMERICAN  LIBERALITY  TO   WORKMEN     269 

of  the  New  York  Telephone  Company  at  the  Cort- 
landt  Street  Exchange  are  furnished  wire  lockers  for 
their  hats  and  wraps,  the  keys  being  in  charge  of  the 
matron.  They  take  their  lunch  in  a  large,  well-fur- 
nished dining-room.  Hot  tea,  coffee  or  chocolate,  and 
milk  are  provided  free  of  expense.  Twice  a  day  the 
employees  leave  their  seats  for  twenty  minutes'  rest 
from  their  exacting  work.  A  reading-room  is  well 
stocked  with  papers  and  magazines.  There  is  a  retir- 
ing-room for  the  operators  who  may  feel  indisposed. 
If  a  girl  falls  ill,  she  is  taken  to  this  room,  and  a  phy- 
sician is  summoned.  When  she  is  well  enough  to  be 
moved,  "  she  is  sent  home  in  charge  of  another  girl 
in  a  closed  carriage."  Night  employees  work  from 
7  P.  M.  to  7  A.  M.,  with  three  hours'  rest.  The  young 
women  "  are  allowed  time  to  shop  occasionally  when 
they  ask  permission,  and  no  deduction  is  made  from 
their  wages."  One  week's  vacation  on  full  pay  is 
given  yearly. 

In  May  of  1893  Mr.  Stuyvesant  Fish,  president  of 
the  Illinois  Central  Railroad  Company,  issued  a  cir- 
cular outlining  a  plan  by  which  the  employees  might 
become  shareholders.  The  strike  of  1894  prevented 
the  scheme  from  going  into  full  operation:  but  in 
May  of  1896  another  circular  was  issued  restating  the 
company's  proposal.  On  the  first  day  of  each  month 
the  company  will  quote  to  an  employee  a  price  at 
which  his  application  for  shares  will  be  accepted  dur- 
ing the  month.  He  can  subscribe  for  one  share,  pay- 
able by  installments  of  five  dollars,  or  any  multiple  of 
this  sum :  the  first  payment  is  to  be  made  at  once ; 
on  the  completion  of  the  payments,  the  company  de- 
livers to  him  a  certificate  of  the  share  registered  in  his 


270  A   DIVIDEND  TO  LABOR 

name.  He  can  then  begin  the  purchase  of  another 
share.  The  officer  or  employee  subscribing  for  shares 
in  this  way  receives  interest  on  his  deposits  at  four 
per  cent,  providing  he  does  not  let  a  year  pass  without 
making  a  payment :  if  he  does,  interest  will  cease,  and 
the  sum  to  his  credit  will  be  returned  to  him  on  appli- 
cation. If  a  subscriber  wishes  to  discontinue  pay- 
ments, he  can  have  liis  money  returned  to  him  with 
accrued  interest :  he  can  do  this  if  he  leaves  the  ser- 
vice for  any  cause,  or  he  can  pay  up  for  the  share 
and  receive  his  certificate.  An  employee  can  pur- 
chase shares  for  cash  if  he  wishes.  An  experienced 
trainman  was  engaged  by  the  company  to  explain  this 
plan  among  the  men.  On  June  30,  1898,  more  than 
700  employees  owned  stock;  the  number  of  shares 
subscribed  for  was  2,042,  of  which  1,569  were  fully 
paid.  The  deposits  on  the  473  shares  in  process  of 
payment  were  128,621.49. 

There  has  been  a  steady  increase  in  the  number  of 
employee  shareholders  since,  but "  the  increase  has  not 
been  large,  owing  to  the  marked  appreciation  in  the 
value  of  the  stock."  The  men  fear  a  fall  in  price,  but 
if  they  see  reason  to  get  over  this  feeling  "  it  is  be- 
lieved that  they  will  invest  as  freely  as  before."  Prac- 
tically every  class  of  labor  is  represented  in  the  list  of 
paid-up  shares.  Many  of  the  employees  have  used  the 
stock-subscribing  privilege  as  a  means  of  saving  at 
interest,  withdrawing  their  deposits  or  selHng  their 
shares,  for  purchasing  homes,  or  in  case  of  emer- 
gencies. "  The  whole  tendency  of  the  plan,"  says 
Vice-President  Welling,  who  has  charge  of  its  appli- 
cation, "  is  in  the  line  of  better  feehng.  ...  In  every 
particular  the  operation  of  the  plan  has  been  satisfac- 


AMERICAN  LIBERALITY  TO   WORKMEN     271 

tory,  and  it  is  to  be  hoped  that  other  roads  will  adopt 
it  with  similar  success." 

The  Chicago  Great  Western  Railway  Company 
began  in  1893  "  to  assist  those  in  their  employ  to  buy 
through  partial  payments  one  share  at  a  time  of  the  capital 
stock."  Four  years  later,  399  officers  and  employees  (none 
of  them  members  of  the  board  of  directors)  owned  1,969 
shares,  and  partial  payments  had  been  made  in  1,624  cases 
"  on  account  of  the  further  purchase  of  one  share  apiece." 
(The  Chicago  newspaper  which  gave  this  account  probably 
referred  to  the  salaried  employees  chiefly.)  The  secretary 
of  the  company  would  "  undertake  on  application  to  purchase 
the  stock  desired  at  its  market  value  without  charge  for  liis 
services,  the  purchase  price,  if  desired,  to  be  paid  for  at  the 
rate  of  ten  dollars  per  share  at  the  time  of  application,  the 
balance  to  be  paid  in  monthly  installments  of  ten  dollars 
until  the  purchase  pi'ice  is  paid,  when  the  stock  will  be  reg- 
istered in  the  name  of  the  purchaser  and  a  certificate  of 
ownership  delivered."  A  recent  communication  from  a 
high  official  of  the  company  states  that  the  plan  "  has  not 
been  much  of  a  success.  Forty  or  fifty  employees  made 
small  investments,  but  apparently  soon  became  tired  of 
saving,  and  as  the  stock  advanced  in  price  many  have  sold 
out."  ^ 

*  In  snpport  of  his  statement  that  "  it  is  certainly  an  uphill  job  to 
induce  workingmen  to  try  to  save,"  the  official  quoted  gives  tliis  inter- 
esting instance,  which  could  be  easily  paralleled  from  the  ranks  of  the 
salaried  classes :  — 

' '  I  once  had  a  man  in  my  employ  as  station  agent  at  $40  a  month. 
He  supported  his  family  and  paid  his  bills  promptly.  As  he  was  a 
bright  man  I  transferred  him  to  a  station  where  he  got  $80,  and 
finally  took  him  into  my  office  at  $100,  and  increased  his  salary  in 
due  course  of  time  to  $150.  After  his  salary  had  been  advanced  to 
$160  a  month,  I  noticed  that  a  good  many  parties  came  in  and  talked 
to  him  privately,  and  he  seemed  anxious.  I  asked  him  what  was  the 
matter,  and  he  said  in  effect :  '  When  I  got  $40  a  month  I  had  no 
difficulty  in  paying  my  expenses  ;  at  $80  it  was  quite  difficult,  and  at 
$\')0  a  month  it  is  impossible.     All  these  men  that  you  see  come  in  to 


272  A  DIVIDEND  TO  LABOR 

Six  American  railroads  now  have  relief  depart- 
ments for  the  benefit  of  their  employees.  Of  these 
roads  the  Baltimore  and  Ohio  had  a  relief  associa- 
tion established  May  1,  1880.  It  was  immediately 
succeeded,  on  the  repeal  of  its  charter,  by  the  B.  & 
O.  Rehef  Department,  a  regular  department  of  the 
company's  service :  the  system  is  a  compidsory  one, 
like  that  of  the  Plant  Company.  "  The  company 
gives  the  needful  service  of  its  officers  and  employees 
on  the  lines ;  furnishes  office-room,  furniture,  and  use 
of  facilities,  such  as  mail  and  telegraph,  becomes 
the  custodian  of  the  funds,  and  guarantees  the  obli- 
gations of  the  department.  It  contributes  in  cash 
$31,000  annually  to  the  pension  fund  and  12,500 
for  physical  examination  of  employees."  A  commit- 
tee of  the  president  and  directors  of  the  company 
has  charge  and  final  control  of  the  three  sections 
—  the  Relief,  Savings  and  Pensions  features.  The 
president  appoints  the  officers.  One  advisory  com- 
mittee of  seven  members  —  the  general  manager  and 
two  men  chosen  annually  from  the  machinery,  trans- 
portation and  road  departments  by  the  members  of 
the  Relief  Feature  —  has  charge  of  the  lines  east  of 
the  Ohio  River  and  another  of  the  lines  west.  A 
superintendent  has  immediate  charge  of  the  depart- 
ment. 

The  members  of  the  Relief  Feature  —  substan- 
tially all  the  employees  —  are  divided  into  the  haz- 

talk  to  me  are  dunning  me  for  pa3rment  of  bills  which  I  am  unable  to 
pay.'  He  soon  left  my  employment,  about  1879.  I  have  not  seen 
him  since  until  last  year  when  I  was  in  Canada,  and  found  him  there 
an  old  gray-headed  man,  as  station  agent,  getting  probably  $50  or  $60 
a  month.  I  asked  him  how  he  was  getting  along,  and  he  said,  in  the 
most  cheerful  manner,  '  First  rate.' " 


AMERICAN  LIBERALITY  TO   WORKMEN     273 

ardous  and  non-hazardous  classes,  the  former  being 
engaged  m  operating  trains  or  rolling  stock.  Each 
class  has  five  divisions  according  to  its  pay.  Divi- 
sion A  contains  those  men  whose  wages  are  $35  per 
month  or  less  :  its  contribution  is  $1  a  month  ;  divi- 
sion B  (pay  between  $35  and  §50)  contributes  $2 : 
division  C  (pay  between  $50  and  $75)  contributes  $3  ; 
division  D  (pay  between  $75  and  $100),  contributes 
$4 ;  and  division  E  (pay  over  $100)  contributes  $5. 
The  divisions  of  the  non-hazardous  class  pay  75  cents 
in  the  first  division,  and  75  cents  additional  in  each 
following  division.  Disabled  members  do  not  con- 
tribute while  receiving  benefits.  Contributions  are  de- 
ducted on  the  pay-roUs.  The  benefits  are  the  same 
for  the  two  classes.  In  division  A,  in  case  of  dis- 
ability from  accidents  "  on  duty,"  50  cents  a  day  are 
paid  up  to  26  weeks ;  if  longer  aid  is  needed,  25  cents 
a  day ;  surgical  attendance  is  given,  and  $500  are  paid 
in  case  of  death.  For  sickness  or  accident  off  duty, 
60  cents  a  day  are  paid  after  the  first  week  (Sundays 
and  holidays  not  being  counted),  not  exceeding  52 
weeks ;  $250  are  paid  in  case  of  death.  The  bene- 
fits in  the  other  divisions  are  two,  three,  four  or  five 
times  as  large,  respectively.  An  employee  may  pro- 
cure additional  natural-death  benefit,  up  to  five  times 
that  of  the  lowest  class,  by  paying  25  cents  a  month 
for  each  $250.  Membership  lapses  with  retirement 
from  the  service,  except  that  a  retiring  member  may 
retain  his  natural-death  benefit.  Injury  or  sickness 
due  to  intoxication,  sexual  immorality,  breach  of  peace 
or  violation  of  law  receives  no  benefits. 

The  Savings  Feature  comprises  a  savings-bank  and 
a  building   and  loan   association,   under    the   usual 


274  A  DIVIDEND  TO  LABOR 

regulations.  The  wife,  child,  father  or  mother  of 
a  member,  or  the  beneficiary  of  a  deceased  member 
may  deposit.  The  savings-bank  lends  to  the  build- 
ing association  at  six  per  cent. ;  repayment  is  made 
by  monthly  installments  not  less  than  $1.50  per 
$100  of  the  loan,  deducted  on  the  pay-roll.  The 
company's  original  annuity  plan  not  being  success- 
ful, it  instituted  in  1884  the  Pension  Fund  now  in 
operation.  The  appropriation  available  for  the  sup- 
port of  this  fund  is  now  $50,000  a  year :  $15,000 
of  this  amoimt  is  interest  on  a  $375,000  surplus  of 
the  department :  the  remainder  is  the  company's 
contribution.  The  usual  pension  age  is  sixty-five. 
The  committee  of  the  president  and  directors  decides 
who  shaU  receive  pensions,  which  are,  apparently, 
granted  to  those  considered  most  worthy  of  aid. 
The  rate  is  one  half  the  rate  of  sick  benefits,  vary- 
ing from  twenty-five  cents  a  day  to  $1.25.  There 
were  218  names  on  the  pension  roll  June  30,  1895, 
the  payments  for  the  year  having  been  $34,800.05. 
The  Relief  Feature,  paid  between  May  1,  1880,  and 
July  31,  1896,  for  deaths  from  accidents  and  sick- 
ness, disability  and  surgical  expenses,  $4,392,000. 
The  membership  in  1898  was  20,710.  The  receipts 
from  the  members  for  1894-95  were  $366,000,  and 
from  interest  and  sundries  $17,000.  The  expenses 
were  for  benefits  $308,000,  for  general  expenses 
and  minor  expenses  $53,000.  The  deposits  were 
$268,000,  and  the  loans  $176,000.  The  amount 
loaned  to  employees  has  been  used  for  building  838 
houses,  buying  782,  improving  174,  and  releasing 
liens  on  365.  The  dividend  in  1894-95  was  5^  per 
cent.  « 


AMERICAN  LIBERALITY  TO   WORKMEN     275 

The  Baltimore  and  Ohio  RaUroad  has  also  an  in- 
teresting and  effective  system  of  traveling  libraries 
for  the  use  of  all  its  employees,  east  and  west  of  the 
Ohio. 

The  Pennsylvania  Railroad  Voluntary  Relief 
Department  began  operations  in  1886.  It  has  a 
superintendent,  and  an  advisory  committee  of  thir- 
teen members.  The  general  manager  of  the  road 
is  chairman ;  the  board  of  directors  choose  six  mem- 
bers annually,  and  the  contributing  members  of  the 
Relief  Fund  six.  The  company's  general  relations 
to  the  department  are  like  those  of  the  Baltimore  and 
Ohio.  "  The  operations  are  divided  into  periods  of 
three  years.  If  the  contributions  of  members  are 
not  sufficient  to  pay  the  benefits,  the  company  pays 
them  as  they  become  due,  and  if  at  the  end  of  any 
period  of  three  years  a  deficiency  exists,  the  com- 
pany, having  paid  it  as  it  accrued,  charges  the 
amount  to  itself,  thereby  giving  the  amount  of  the 
deficiency  to  the  Relief  Fund,  which  starts  off  afresh." 
If  a  surplus  should  exist  at  the  end  of  any  period, 
it  is  set  aside  to  be  used  eventually  for  a  superan- 
nuation fund,  or  for  some  other  purpose  for  the 
sole  benefit  of  members :  "  from  year  to  year  cer- 
tain safe  amounts  are  permanently  transferred  to 
the  surplus  fund."  Membership  is  voluntary,  and 
terminable  at  the  end  of  any  month ;  withdrawal 
from  service  ends  all  benefits.  Members  are  divided 
into  five  classes  according  to  pay,  though  a  member 
can  enter  any  higher  class  he  chooses,  if  he  passes 
the  medical  examination.  He  can  enter  any  lower 
class  if  he  wishes.  The  first  class  embraces  those 
men   paid   less   than  $35  a   month  and   paying   75 


276  A  DIVIDEND  TO  LABOR 

cents;  this  amount  is  increased  in  ascending  order 
75  cents  for  each  upper  class.  The  pay  limits  are 
$55,  175  and  $95.  The  benefit  in  the  first  class  is 
50  cents  a  day  in  case  of  accident  on  duty  up  to  52 
weeks  —  25  cents  a  week  after  that,  with  surgical  at- 
tendance free.  In  case  of  accident  or  sickness  off 
duty,  it  is  40  cents  a  day,  after  the  first  three  days, 
not  exceeding  52  weeks.  The  death  benefit  is  $250, 
whatever  the  cause  of  the  death.  The  benefits  in  the 
higher  classes  are  two,  three,  four  and  five  times  as 
great  as  in  the  first  class.  Death  benefits  may  be  in- 
creased by  making  larger  contributions. 

The  "  company  relief  "  of  the  Pennsylvania  Rail- 
road Company,  in  existence  since  October,  1897, 
is  "  in  fact  a  liberal  pension  fimd  arrangement  by 
which  the  company,  entirely  at  its  own  cost,  con- 
tributes to  the  support  of  those  members  of  the 
Relief  Fund  who  have  drawn  their  fifty-two  weeks* 
sick  benefit,  and  are  still  sick  and  needy."  In  De- 
cember, 1896,  the  company  relief  was  $3,600  for 
some  350  persons :  the  annual  bill  is  about  $40,000. 
The  company  pays  the  operating  expenses  of  the 
relief  department,  some  $100,000  a  year.  The  mem- 
bership, December  31,  1895,  was  36,432,  and  is  now 
over  40,000  —  about  60  per  cent,  of  the  total  num- 
ber of  employees,  and  80  per  cent,  of  all  those  eligible. 
Between  February  1,  1886,  and  December  31, 1895, 
there  were  received  from  members,  in  round  num- 
bers, $4,600,000;  interest  on  balances  and  surplus, 
$113,000  ;  contributions  of  the  company,  $1,037,000 ; 
total,  $5,750,000.  There  were  disbursed  in  1886- 
1898  for  disability  from  accident,  on  and  off  duty, 
and   sickness,    $3,321,808 ;    for    deaths  from    these 


AMERICAN  LIBERALITY  TO  WORKMEN     277 

two  causes,  $2,793,861.  The  company  paid  in  this 
time  il,057,451  for  operating  expenses,  $309,560  for 
extraordinary  relief,  $74,499  for  deficiencies,  and 
$60,653  in  special  payments  in  1886,  making  a  total 
of  benefits  paid  by  the  relief  fund  and  the  company 
of  $7,167,832.  There  was  a  balance,  December  31, 
1898,  of  $257,338,  and  a  surplus  fund  will,  before 
long,  constitute  the  basis  of  a  superannuation  fund: 
the  surplus  is  reported  this  year  as  being  $635,970. 
In  1895  the  cases  of  disability  from  accident  aided 
were  8,765 :  of  sickness,  23,112 :  of  deaths  from 
accident,  99:  of  other  deaths,  343 — a  total  of  32,319 
cases,  in  which  aid  was  given  to  the  extent  of 
$591,495.97. 

The  relief  department  of  the  Pennsylvania  Lines 
"West  of  Pittsburg,  established  in  1889,  varies  but 
slightly  in  its  regulations  from  that  of  the  Eastern  lines. 
The  membership,  June  30, 1896,  was  15,884.  The  receipts 
to  that  date  had  been  $1,986,000,  the  disbursements 
$1,916,000. 

The  Philadelphia  and  Reading  and  the  Burling- 
ton systems  are  modifications  of  the  Pennsylvania.  The 
Reading  department  was  organized  in  1888 :  its  advisory 
committee  has  fifteen  members,  with  larger  powers  than 
elsewhere.  The  company  pays  a  part  of  the  operating  ex- 
penses, now  five  per  cent,  of  the  members'  contributions.  It 
does  not  guarantee  the  payment  of  benefits.  Substantially 
all  the  employees  are  members,  and  all  new  men  must  join. 
The  members  pay  the  medical  examiner.  In  case  of  death, 
besides  the  death  benefit,  there  is  a  payment  of  $100  from 
the  surplus  fund :  November  30,  1895,  this  fund  amounted 
to  $309,000  ;  the  membership  was  15,789. 

The  Burlington  Voluntary  Relief  Department, 
beginning  in  1888,  includes  the  roads  affiliated  with  the 
Chioago,  Burlington  and  Quincy  Railroad.   To  avoid 


278  A   DIVIDEND   TO  LABOR 

the  surplus  accumulated  under  the  Baltimore  and  Ohio  and 
Pennsylvania  systems,  the  rate  of  payment  of  sick  benefit 
•was  increased  25  per  cent.,  making  it  equal  to  accident 
benefit :  the  distinction  between  accident  on  duty  and  acci- 
dent off  duty  was  abolished,  and  the  privilege  of  continu- 
ing death  benefit  after  the  termination  of  service  was 
extended.  The  maximum  death  benefit  is  from  $1,000  to 
$1,500,  according  to  class.  With  some  other  minor  differ- 
ences, the  Burlington  system  is  the  same  as  the  Pennsyl- 
vania. On  December  31,  1898,  the  membership  was 
16,325,  or  61.81  per  cent,  of  the  whole  number  of  em- 
ployees ;  in  1895,  of  the  train,  engine  and  yard  men,  nearly 
91  per  cent,  were  members,  and  of  all  others  about  50  per 
cent.  To  December  31,  1898,  receipts  from  members  were 
$2,339,525 :  interest  on  monthly  balances  paid  by  the  com- 
panies, $31,713.  Operating  expenses,  paid  by  the  com- 
panies, were  $449,185,  deficiencies,  also  so  paid,  $42,533 ; 
a  total  of  $541,718.  There  was  an  estimated  surplus  of 
$214,958. 

The  Plant  System  Relief  and  Hospital  Depart- 
ment was  established  July  1,  1896,  on  the  general  plan  of 
the  Baltimore  and  Ohio,  with  important  differences.  In  a 
few  months  95  per  cent,  of  the  employees  voluntarily  joined 
the  department.  The  members  have  little  voice  in  the 
management,  which  is  mainly  in  the  hands  of  a  committee 
named  by  the  president.  The  company  contributes  $12,000 
a  year.  The  contributions  are  higher  on  account  of  the 
hospital  feature,  —  in  the  lowest  class  25  cents  a  month, 
and  in  the  higher  classes  50  cents,  more  than  the  B.  &  O. 
sums.  The  company  guarantees  the  obligations  of  the  de- 
partment, and  any  surplus  will  go  toward  a  pension  fund. 

The  employees  of  the  Lehigh  Valley  Railroad  have 
a  relief  system  established  in  1878.  Employees  make  a 
voluntary  contribution  to  the  amount  of  one  day's  wages  or 
less,  but  in  no  case  more  than  three  dollars,  as  called  upon 
by  the  administrators  of  the  fund.  The  company  contributes 
an  equal  amount.     The  daily  benefit  for  an  accident  to  any 


AMERICAN  LIBERALITY  TO   WORKMEN     279 

one  who  responded  to  the  last  call  for  contributions  is  three 
fourths  of  his  last  contribution,  not  longer  than  nine  months. 
In  case  of  death  $50  is  paid  at  once,  and  the  family  receive 
the  accident  benefit.  In  1878-1895  the  total  contributions 
were  $432,845.04,  and  the  payments  $6,089.16  less ;  the 
average  number  of  contributors  in  1895  was  5,332. 

In  these  relief  departments  the  acceptance  of  bene- 
fits operates  as  a  release  and  discharge  of  all  claims 
against  the  company  for  damages  on  account  of  the 
injury.  The  member  agrees  that,  after  an  injury,  he 
will  elect  either  to  seek  damages  from  the  company 
or  to  accept  the  benefits  of  the  fund ;  having  made  his 
choice,  the  other  course  is  not  open  to  him.  The 
contracts  of  five  relief  departments  to  this  effect 
have  been  sustained  by  the  highest  State  courts  and 
by  Federal  courts.  In  all  other  respects  than  the  one 
just  named  the  contract  between  the  company  and 
the  member  is  "  a  one-sided  one  in  favor  of  the  mem- 
ber, the  benefits  being  securely  guaranteed  to  him, 
and  nothing  guaranteed  the  company."  The  advan- 
tages to  the  employees  are  indeed  great  in  this  which 
eminent  judges  have  styled  "  the  highest  order  of 
mutual  benefit  association." 

Mr.  J.  C.  Bartlett,  the  superintendent  of  the  Bur- 
lington relief  service,  closes  his  able  address  on  "  Rail- 
way Relief  Departments,"  which  I  have  freely  used 
in  this  account,  by  stating  his  belief,  from  the  side  of 
the  company,  that  "  whether  the  outlay  is  entirely 
offset  or  not,  the  balance,  if  any,  against  the  relief 
department  is  small,  and  is  but  a  small  price  to  pay 
for  the  improved  conditions.  .  .  .  The  money  value 
of  such  abstractions  as  peace,  harmony,  good-wiU,  so- 
briety, thrift  and  contentment  cannot  be  expressed  in 


280  A  DIVIDEND  TO  LABOR 

dollars,  but  it  is,  nevertheless,  real."  Mr.  WiUougliby,^ 
noting  that  one  seventh  of  the  railway  employees  of 
the  United  States  are  now  comprehended  in  insurance 
departments,  makes  various  suggestions  for  their  im- 
provement which  deserve  the  attention  of  aU  railway 
companies  intending  to  take  up  this  important  system 
of  relief  for  their  employees. 

A  notable  benefit  has  been  conferred  upon  their  em- 
ployees by  numerous  American  railways  through  their 
patronage  of  the  Young  Men's  Christian  Associations.  The 
Railway  Department  of  the  Y.  M.  C.  A.  has  now  some 
twenty-one  homes  or  club-houses  for  railroad  men.  These 
buildings  contain  reading-rooms  and  libraries ;  halls  for 
lectures,  concerts  and  social  gatherings  :  class-rooms  for  the 
study  of  mechanical  drawing,  penmanship  and  other 
branches,  with  lunch-rooms,  baths,  rooms  for  games  and 
smoking,  bowling  alleys  and  gymnasiums,  and  sleeping- 
rooms.  The  usual  fee  for  membership  is  but  25  cents  a 
month.  Over  sixty  railroad  companies  interested  are  ap- 
propriating some  $160,000  a  year  for  the  support  of  this 
work,  and  have  erected,  or  are  erecting,  buildings  at  rail- 
road centres  along  their  lines,  ranging  in  value  from  $4,500 
to  $175,000.  This  work  is  now  in  operation  at  136  points, 
with  the  cooperation  of  railroad  officials.  The  most  costly 
buildings  are  that  in  Philadelphia,  where  the  Pennsylvania 
Railroad  gave  $33,000  toward  an  edifice  now  valued  at 
$130,000 ;  that  in  New  Haven,  where  the  New  York,  New 
Haven  and  Hartford  Railroad  gave  some  $43,000 ;  that 
in  Chicago,  where  the  Northwestern  Road  contributed 
$18,000,  and  that  on  Madison  Avenue,  New  York,  erected 
for  the  employees  of  the  roads  using  the  Grand  Central 
station  (including  express  companies),  by  the  late  Cornelius 
Vanderbilt,  now  valued  at  $225,000.  This  last  is  one  of 
the  finest  club-houses  in  the  country,  and  it  is  open  day  and 

^  Workingman't  Insurance,  pp.  309-318. 


AMERICAN  LIBERALITY  TO   WORKMEN     281 

night  for  the  usual  fee  of  the  railway  association.  At  West 
72d  Street  is  another  club-house  for  the  men  in  the  freight 
service  of  the  New  York  Central  Company. 

On  the  Brooklyn  Bridge  Railway,  owned  by  New 
York  city,  the  employees  receive  higher  wages  than  on  the 
elevated  roads  in  New  York  or  Brooklyn  ;  "  free  medical 
attendance  in  case  of  injury,  and  usually  half  their  regular 
wages  as  long  as  needed ;  a  two  weeks'  vacation  on  full 
pay,  rubber  coats  and  gloves,  and  two  suits  of  uniform  a 
year."  ^ 

The  Brooklyn  Rapid  Transit  Company  controls 
five  electric  railways  of  that  city  and  employs  some 
4,500  men  on  its  cars.  On  account  of  the  fan  shape  of 
Brooklyn,  the  company  is  obliged  to  support  several  car 
depots  more  than  the  usual  number.  After  the  strike 
of  1895,  it  converted  two  dingy  "  extra  rooms  where 
car  crews  spend  their  time  when  off  duty  into  attrac- 
tive quarters,  weU  hghted,  ventilated  and  heated." 
They  were  equipped  with  gymnastic  apparatus,  a 
library  table  supplied  with  newspapers  and  magazines, 
games,  a  pianoforte,  and  a  pool  table.  This  change 
"  has  corrected  the  tendency  to  frequent  saloons." 

At  one  of  the  depots  the  men  have  built  a  stage  on 
which  minstrel  shows  and  other  entertainments  are 
occasionally  given  :  the  proceeds  are  devoted  to  ath- 
letics —  as  uniforming  the  baseball  and  football  teams. 
From  time  to  time  the  company  engages  profes- 
sional talent  to  give  a  vaudeville  entertainment  for 
the  men  and  their  families,  followed  by  a  general 
dance.  In  cold  weather  the  company  contracts  with 
a  coffee-house  to  furnish  ten-gallon  tanks  of  good 
hot  coffee  at  the  various  depots,  where  men  on  the 

^  Professor  E.  W.  Bemis  on  Street  Railways,  in  Municipal  Monop- 
olies, p.  566. 


282  A  DIVIDEND  TO  LABOR 

road  may  stop  and  "  warm  up  "  free.  Id  the  hardest 
summer  days  sandwiches  of  Vienna  bread  and  ham, 
with  coffee,  are  provided  at  the  principal  pleasure  re- 
sort terminals.  At  the  close  of  the  busy  siunmer 
season  the  men  of  each  division  have  an  outing,  in  the 
form  of  a  trolley  ride  to  a  grove  where  the  day  is  spent 
in  sport,  or  of  a  steamboat  excursion  up  the  Hudson, 
where  the  annual  track  athletics  are  held.  A  fund  of 
$10,000  provided  prizes  for  the  men  who  have  a  clear 
record  for  the  year :  this  had  the  effect  of  diminish- 
ing accidents  and  the  need  of  discipline.  The  general 
effect  of  the  company's  policy  has  been  to  elevate  the 
condition  of  those  already  in  the  service  and  to  enable 
it  to  have  a  better  class  of  men.i 

The  Chicago  City  Railway,  operating  cable  and 
trolley  lines  on  the  south  side  of  the  city,  has  pro- 
vided for  the  use  of  its  employees,  who  number  over 
1,600,  club-house  quarters  in  its  five  "  barns  "  or  car- 
houses.  Each  of  these  houses  has  a  gymnasium,  a 
library  and  reading-room,  a  billiard-room,  and  a  vari- 
ety of  baths.  These  are  supported  by  the  men  them- 
selves paying  a  small  annual  fee,  the  company  giving 
the  rent  of  the  rooms.  Their  feeling  is  that  the  men 
will  appreciate  more  highly  facilities  for  which  they 
pay  something.  This  principle  is  justified  here  in  the 
great  interest  which  the  employees  show  and  the  large 
amount  of  time  they  spend  in  the  club-houses  when  off 
duty. 

The  Employees'  Mutual  Aid  Association  is  a  very 
flourishing  organization,  which  was  constituted  Septem- 
ber 26,  1894.  On  the  1st  of  October,  1897,  it  had 
2,021  members  (of  whom  400  were  former  employees 

1  CommiiuicatioQ  from  the  general  passenger  agent 


AMERICAN  LIBERALITY  TO   WORKMEN     283 

who  retained  their  membership),  and  the  amount  of 
insurance  in  force  was  $1,010,500.  The  "aim  and 
purpose  "  is  "  to  maintain  a  benefit  fund,  out  of 
which  shall  be  paid,  on  the  death  of  a  member  in  good 
standing  in  the  association,  to  his  family  or  those  de- 
pending upon  him,  as  he  may  have  directed,  the 
amount  of  one  assessment  [on  the  whole  body  of 
members],  provided  that  such  amount  shall  not  ex- 
ceed the  sum  of  $500."  In  the  year  1896-97  six 
assessments  more  than  paid  for  twelve  deaths:  in 
1895-96  five  assessments  paid  for  nine  deaths :  in 
1894-95,  seven  assessments  paid  for  seven  deaths. 
This  statement  "  shows  a  steady  decrease  in  cost  to 
each  member  for  each  death :  "  the  annual  fee  is  fifty 
cents  in  advance,  and  the  assessment  calls  for  the 
same  sum  within  thirty  days.  The  railway  company 
contributed  $350  in  1896-97,  "this  amount  being 
computed  on  a  basis  of  100  memberships."  The  com- 
pany is  authorized  by  the  constitution  of  the  associa- 
tion to  deduct  from  a  member's  salary  "each  and 
every  assessment,  which  said  assessment,  so  collected, 
said  treasurer  shall  remit  to  the  treasurer  of  the 
association.  ...  It  is  understood  that  the  Chicago 
City  Railway  Company  shall  in  no  way  or  manner  be 
liable  for  the  assessments  so  made,  or  collected  by  it 
or  its  treasurer,  the  said  treasurer  only  acting  as  an 
individual  and  not  in  his  official  capacity  as  treasurer 
of  the  Chicago  City  Railway  Company.  .  .  .  Every 
application  for  membership  shall  be  accompanied  by 
the  medical  examiner's  fee  ($1.50),  the  sum  of  50 
cents  for  annual  dues,  and  by  the  amount  of  two 
assessments  ($1),"  making  $3  in  all;  haK  of  this 
sum  is  remitted  if  the  report  of  the  examiner  is  un- 
favorable. 


284  A  DIVIDEND  TO  LABOR 

The  great  success  of  this  association  is  probably 
due  in  some  degree  to  the  two  excellent  provisions  of 
the  constitution  concerning  intoxicating  liquors.  Any 
member  leaving  the  employ  of  the  company  and  en- 
gaging thereafter  "  in  the  manufacture  or  sale  of 
intoxicating  liquors  shall  cease  to  be  a  member  of 
this  association  immediately  upon  entering  into  such 
occupation."  If  he  fails  to  notify  the  secretary  of  his 
entering  such  an  occupation,  but  continues  to  pay  his 
dues,  "  then,  in  the  event  of  his  death,  his  beneficiary 
shall  not  be  entitled  to  any  benefits  of  the  association, 
and  his  membership  shall  be  considered  as  canceled 
upon  the  date  he  entered  into  such  occupation." 

"  Any  member  habitually  using  alcoholic  beverages 
to  excess  will  not  be  considered  in  good  standing,  and 
such  member  will  be  notified  to  appear  before  the 
board  of  directors,  and  will  be  given  a  hearing,  after 
which,  should  the  board  of  directors,  by  a  majority 
vote,  deem  it  necessary  for  the  good  of  the  association, 
they  may  expel  said  member  permanently."  The 
prosperity  of  the  association  for  its  first  three  years  of 
existence  reminded  the  president  of  "a  remark  once 
made  by  a  railway  man  in  regard  to  the  operation  of 
a  certain  street  railway,  which  was  to  the  effect  that 
'  it  would  take  a  much  better  man  to  stop  it  than  to 
run  it.' " 

In  the  anthracite  coal  mines  of  Pennsylvania  something 
has  been  done  by  employers  to  improve  the  hard  lot  of  the 
miners.  The  Philadelphia  and  Reading  Coal  and  Iron 
Company  established  a  relief  fund  in  1877  with  an  endow- 
ment of  $20,000.  The  system  is  practically  compulsory. 
"  All  employees  are  put  upon  the  list,  and  the  monthly  dues 
deducted  from  wages,  without  asking  the  consent  of  the 


AMERICAN  LIBERALITY  TO   WORKMEN     285 

'contributors.'  .  .  .  The  arrangement  is  generally  acqui- 
esced in,  and  is,  indeed,  generally  regarded  as  an  advan- 
tageous arrangement  by  the  men."  *  There  are  four  classes 
of  men,  assessed  from  15  to  50  cents  a  month ;  $2  a  week 
benefit  is  paid  to  those  of  the  fourth  class,  and  S5  to  those 
in  the  other  classes.  Thirty  dollars  in  cash  and  $2.80  a 
week  for  a  year  are  paid  to  the  family  of  a  member  of  the 
fourth  class  if  he  dies  from  an  accident  while  at  work ;  the 
same  funeral  expenses  and  $7  a  week  in  the  case  of  a  mem- 
ber of  the  upper  classes.  In  1896,  27,626  men  contributed 
$125,921.64,  and  the  fund,  $1,460. 

The  Lehigh  Coal  and  Navigation  Company  has 
maintained  a  more  liberal  plan  for  its  5,000  employees  since 
1883.  The  company  contributes  the  interest  on  a  fund  of 
$20,000  and  a  fixed  sum  for  each  ton  of  coal  mined ;  the 
inside  men  contribute  one  half  of  one  per  cent,  on  wages, 
and  the  outside  men  one  fourth  of  one  per  cent.  In  1895 
the  receipts  were  $14,143,  —  $8,335  from  the  company  and 
$5,808  from  the  employees :  benefits  paid  were  $16,396 ; 
these  benefits  are  $30  for  funeral  expenses  and  half  pay  for 
eighteen  months  to  the  family ;  half  pay  for  not  more  than 
eighteen  months  is  the  allowance  for  disability  from  acci- 
dent. 

The  Lehigh  Valley  Coal  Company,  the  Delaware 
and  Hudson  Canal  Company,  and  some  of  the  compa- 
nies controlled  by  the  Pennsylvania  Railroad  Company, 
have  relief  funds  ;  employees  are  asked  to  contribute  a  day's 
wages,  the  company  paying  an  equal  sum.  "  When  the 
fund  is  exhausted,  another  call  is  made.  .  .  .  The  plan  is 
thought  to  be  fairer  for  the  men,  especially  those  who  are 
only  temporarily  employed,  than  that  of  the  Reading  or  the 
Lehigh  Coal  and  Navigation  Company."  The  fund  is  usu- 
ally disbursed  upon  orders  from  a  colliery  committee,  con- 
sisting of  the  mine's  foreman  and  two  employees.  The 
Lehigh  and  Wilkesbarre  Coal  Company  pays  funeral 

^  "The  Anthracite  Mine  Laborers,"  by  G.  O.  Virtue,  in  the  Bulle- 
tin of  the  Department  of  Labor,  No.  13,  p.  771. 


286  A  DIVIDEND  TO  LABOR 

expenses,  and  makes  a  monthly  allowance  for  accidents 
according  to  the  condition  of  the  injured  person's  family. 
Coxe  Bros.  &  Company  give  $50  for  funeral  expenses 
in  case  of  death  from  accident,  and  pay  $3  a  week  to  the 
widow  and  $1  a  week  for  each  child,  for  a  year :  the  firm 
also  regularly  assists  men  disabled  by  accident. 

The  Solvay  Process  Company  manufactures  soda- 
ash  under  patents  from  the  French  company  of  the 
name,  at  Syracuse,  N.  Y.,  having  over  1,500  em- 
ployees. It  has  attempted  to  improve  their  condition 
by  work  done  with  and  for  their  children.  A  small 
sewing  -  school  for  girls,  started  by  the  wife  of  the 
president  of  the  company  in  1886,  began  with  some 
twenty-five  pupils.  It  soon  outgrew  the  quarters  avail- 
able, and  in  1890  the  company  built  a  haU,  in  con- 
nection with  a  dwelling-house,  arranged  with  special 
reference  to  the  sewing-school  and  similar  work.  The 
number  of  girls  is  now  250 ;  the  course  is  graded, 
using  the  Pratt  Institute  system.  The  ladies  of  the 
families  of  the  officers  and  chief  employees  give  their 
services,  and  the  expenses  for  material,  etc.,  are  met 
by  the  King's  Daughters.  An  embroidery  class  makes 
fine  work,  which  is  sold  at  an  annual  bazaar,  and 
helps  largely  to  provide  funds.  There  are  classes 
in  household  work  and  cooking.  A  gymnastic  class 
for  boys  and  girls  over  twelve  was  formed  in  1887, 
on  a  self-supporting  basis,  and  ran  for  six  years,  being 
then  superseded  by  a  dancing  class,  organized  among 
the  boys  and  young  men  in  1890.  This  also  contributes 
to  the  treasury  of  the  King's  Daughters.  The  im- 
provement wrought  by  the  classes  carried  on  by  these 
ladies  has  been  great.  Kindergartens  in  Solvay  vil- 
lage and  in  Syracuse  have  been  promoted  by  them. 


AMERICAN  LIBERALITY  TO   WORKMEN     287 

The  Solvay  company  has  divided  profits  with  the 
general  officers  and  the  chief  employees  since  1887, 
the  bonus  being  proportioned  to  the  dividend  on  stock. 
In  1890  "  a  junior  class  of  participation  "  was  formed, 
taking  in  the  foremen  and  assistant  foremen,  depend- 
ing upon  dividends  in  a  reduced  proportion.  Between 
seventy-five  and  one  hundred  persons  are  now  profit 
sharers,  and  the  plan  is  stated  to  have  worked  admir- 
ably. The  Mutual  Benefit  Society  of  Solvay  had  a 
balance  on  hand,  February  15,  1899,  of  $7,925.59 : 
the  company,  with  one  representative  on  the  board, 
contributes  half  as  much  as  the  men,  having  given 
twice  or  three  times  this  amount  in  former  years. 

The  operation  of  a  pension  fund,  established  in 
1892,  has  not  been  satisfactory,  and  it  is  being  wound 
up.  The  company  had  contributed  nearly  $200,000 
by  1895,  and  1,500  men  were  interested ;  they  had 
individually  consented  and  agreed  to  the  articles  gov- 
erning the  fund,  which  were  of  the  usual  kind.  But 
some  twenty-five  suits  were  brought  against  the  com- 
pany to  compel  the  payment  of  pass-books  given  under 
these  conditions,  which  had  not  been  complied  with, 
and  a  typical  case  was  decided  against  the  company, 
which  appealed,  and  it  is  now  pending.  Rather  than 
have  further  difficulty,  the  company  has  paid  out  a 
large  sum  in  settling  claims  presented  to  it,  and  is 
paying  off  and  canceling  the  pass-books,  being  assured, 
so  far  as  possible,  that  the  sums  paid  are  actually 
expended  for  the  purposes  named.  The  president 
believes  that  the  class  of  workmen  employed  at  Solvay 
are  not  yet  ready  to  appreciate  a  scheme  of  this  char- 
acter. 

Pels  &  Co.,  manufacturers  of  soap,  Philadelphia, 


288  A  DIVIDEND  TO  LABOR 

Penn.,  employ  some  175  persons,  of  whom  about  one 
third  are  women.  The  firm,  while  paying  very  good 
wages,  reduced  the  working  day  for  men,  some  years 
ago,  from  ten  hours  to  nine.  More  recently  the  girls' 
day  has  been  reduced  to  eight  hours  ;  and  in  dull  times 
the  day  for  men  and  boys  is  eight  hours,  without  re- 
duction in  wages,  their  week  being  five  and  one  half 
days,  and  that  of  the  girls  five  days.  Office  em- 
ployees and  foremen  receive  a  vacation,  and  factory 
employees  have  Saturday  afternoons  in  summer,  with 
pay.  Dressing-rooms  are  provided  :  a  lunch-room  for 
girls  is  a  fact,  and  one  for  men  is  a  probability.  An 
open  space,  laid  out  with  grass  and  plants,  gives  oppor- 
tunity for  lounging  and  games  during  the  noon-hour. 
The  employees'  mutual  aid  association  is  subsidized 
by  the  firm,  which  offers  facilities  for  savings  that  are 
well  used.  The  firm  does  not  yet  see  "  an  increase  in 
material  work  equal  to  increase  in  wages  and  decrease 
in  hours,  but  the  result  in  that  direction  is  not  dis- 
couraging. There  is  recognizable,  however,  a  cheer- 
fulness and  interest  throughout  the  place  to  be  attrib- 
uted largely  to  the  sense  of  fair  treatment.  The  need 
of  close  overseeing  is  less  than  formerly.  We  think 
we  see  a  more  self-respecting  bearing  in  the  force  and 
a  cordiality  towards  the  firm  which  fully  justify  the 
concessions  made." 

The  Sherwin-Williams  Company,  of  Cleveland, 
Ohio,  are  paint  and  color  makers,  employing  some  five 
hundred  persons.  Two  floors  of  one  of  their  build- 
ings have  been  converted  into  lunch-rooms,  with  a 
kitchen  annexed,  under  a  veteran  cook.  The  method 
is  like  that  of  the  National  Cash  Register  Company, 
serving  tea  or  coffee,  and  a  stew  or  a  soup  free ;  but 


i 


AMERICAN  LIBERALITY  TO   WORKMEN     289 

there  are  some  extra  dishes  which  are  provided  at  cost 
price  for  those  who  wish  them.  The  men  take  weekly 
turns  in  serving  on  each  table.  (The  seventy-six  girls 
employed  have  a  separate  room.)  The  president,  the 
officers  and  the  traveling  salesmen,  when  in  town,  take 
their  lunch  here.  The  men  lunch  in  two  shifts ;  their 
lunch-time  is  limited,  from  the  nature  of  the  business, 
but  there  are  books  and  magazines  in  the  room  at 
their  disposal,  if  they  have  time  for  them.  There  is 
also  a  branch  of  the  Public  Library  in  the  factory 
with  ninety-nine  names  on  its  list.  The  company  does 
much  printing,  and  the  work  is  often  put  before  the 
men  at  lounging-time  for  inspection  and  suggestion. 
There  is  a  complete  laundry  in  the  factory  which 
washes  the  large  number  of  towels  and  aprons  needed 
in  the  work,  and  the  table  linen  of  the  lunch-rooms. 
There  are  large  bath  and  wash  rooms,  which  are  in 
frequent  use.  The  employees  and  their  famihes  are 
invited  to  an  annual  outing :  each  employee  receives  a 
tm*key  for  Thanksgiving.  The  Mutual  Benefit  Soci- 
ety (182  members)  pays  a  benefit  of  50  per  cent,  of 
regular  wages  for  not  more  than  twelve  weeks,  and  a 
death  benefit  of  $25,  to  which  the  company  adds  $75. 
The  member's  contribution  is  one  cent  on  a  dollar  of 
wages  up  to  $10  a  week.  The  company  prints  a 
monthly  magazine  for  circulation  among  the  men. 
"  We  are  very  confident  that  what  we  are  doing  for 
our  employees  is  most  heartily  appreciated  by  them. 
We  believe  that  it  pays." 

The  immense  works  of  the  H.  J.  Heinz  Company, 
of  Pittsburg,  Penn.  (pickles  and  preserves),  employ 
some  2,500  persons,  of  whom  400  are  women  (dressed 
in  blue  gowns  and  white  caps).     For  the  benefit  of 


290  A  DIVIDEND  TO  LABOR 

its  female  employees  the  company  has  numerous  con- 
veniences. On  the  fourth  floor  of  one  of  its  large 
buildings  it  has  a  lunch-room  with  a  seating  capacity 
of  500;  it  is  attractively  decorated  and  furnished,  with 
a  hundred  or  more  pictures  on  the  walls  and  a  piano- 
forte in  one  corner.  Tea  and  coffee  are  provided  for 
a  cent  a  cup,  and  food  is  warmed  or  cooked :  a  "  free 
lunch"  was  not  rehshed  by  the  more  independent 
girls.  In  the  story  below  are  the  large  dressing- 
rooms,  where  each  girl  has  a  separate  locker,  with 
bathrooms  and  a  rest-room  with  two  beds  and  a  med- 
icine closet  for  women  indisposed.  A  matron  has 
the  oversight  of  the  girls.  The  roof  of  the  building, 
with  a  fountain  playing  on  it,  is  available  as  a  roof- 
garden  during  the  noon-hour:  there  is  an  organ  in 
the  tower.  The  lunch-room  is  used  for  concerts  and 
lectures  winter  evenings.  The  men  employed  have 
access  to  a  restaurant  where  food  is  sold  at  cost,  and 
there  is  a  circulating  Hbrary  open  to  all.  In  a  new 
building  just  erected  there  is  a  men's  dining-room  hke 
that  for  the  women.  In  the  fourth  and  fifth  stories 
is  an  auditorium  100  x  100  feet  and  30  feet  high, 
lighted  by  a  large  dome  in  the  roof,  and  seating  2,500 
persons.  This  is  to  be  used  for  lectures  and  enter- 
tainments for  the  employees,  for  the  annual  Christ- 
mas festivities,  and,  under  certain  restrictions,  for 
public  meetings  and  entertainments.  On  the  top  of 
the  building  is  a  roof -garden  100  x  180  feet,  with 
plants,  flowers  and  shrubbery,  and  connected  by  an 
elevator  with  the  lower  floors. 

The  P.  Lorillard  Company,  tobacco  manufacturers  of 
New  York,  established  in  1882  a  library,  reading-room, 
and  gymnasium  for  the  use  of  its  numerous  employees  in 


AMERICAN  LIBERALITY  TO   WORKMEN     291 

Jersey  City,  where  its  works  are  located.  These  institu- 
tions were  in  Booraem  Hall,  on  the  corner  of  Grove  Street 
and  Newark  Avenue.  The  catalogue  printed  in  1884 
showed  over  6,000  titles  of  popular  and  standard  literature 
in  its  82  pages :  the  library  is  open  daily  from  10  A.  M.  to 
10  P.  M.,  —  for  women  on  Mondays,  Wednesdays  and  Fri- 
days, and  for  men  on  the  alternate  week-days:  for  both 
sexes  on  Sundays  and  holidays.  Ten  daily  papers  and 
thirty-five  weekly  papers  and  magazines  are  kept  on  file. 
Evening  schools  have  been  kept  in  this  hall  in  compliance 
with  the  New  Jersey  law,  and  over  two  hundred  boys  and 
girls  attend  on  an  average.  The  need  of  extra  room  was 
so  great  that  the  gymnasium  was  surrendered  to  the  schools 
some  years  ago.  Testimony  to  the  effect  that  "  the  Loril- 
lards  are  good  people  to  work  for  "  is  not  lacking. 

At  The  Fair,  one  of  the  great  department  stores  of 
Chicago,  one  will  find  on  the  restaurant  floor,  and  occupy- 
ing a  part  of  the  restaurant  space  during  its  session,  a 
school  for  cash  girls,  which  might  well  be  imitated  by  other 
department  stores.  It  has  been  in  charge  of  the  same  lady 
teacher  for  ten  years :  as  many  as  106  girls  are  in  attend- 
ance for  two  hours  every  morning.  The  instruction  has  a 
practical  bearing  naturally.  "  The  Fair "  employs  the 
teacher,  buys  the  text-books,  and  in  other  ways  shows  its 
sympathy  with  this  plan  for  remedying  the  defects  in  the 
school  education  of  these  children  put  to  work  so  early. 

The  Bullock  Electric  Manufacturing  Company, 
of  Cincinnati,  Ohio,  furnishes  its  employees  with  lunch- 
rooms, bathrooms  and  reading-rooms.  The  Eastman 
Kodak  Company,  in  its  camera  works  at  Rochester, 
N.  Y.  (1,000  employees),  has  a  lunch-room  for  the  girls, 
with  a  cook  who  prepares  the  material  furnished  by  them  ; 
there  is  a  similar  arrangement  for  the  men,  and  also  a  lunch- 
room for  the  women  employed  in  the  office  building.  S.  E. 
Packard  and  Sons,  paper-box  makers,  of  Campello, 
Mass.,  have  equipped  a  lunch-room  for  their  seventy-five 
employees.      They    have    provided     dressing-rooms     and 


292  A  DIVIDEND   TO  LABOR 

lockers,  with  uniform  overalls  and  coats  for  men,  laundered 
at  the  firm's  expense.  They  have  adopted  the  committee 
system,  having  a  factory  committee  and  an  executive  com- 
mittee composed  of  the  foremen  and  one  of  the  firm. 

The  Remington  -  Sholes  Company,  of  Chicago, 
makers  of  typewriters,  with  two  hundred  men,  offered 
prizes  April  1,  1899,  for  useful  suggestions  from  them. 
In  the  next  three  months  it  received  ahout  thirty  sugges- 
tions, "  some  of  which  are  useful,  and  one  of  which  has 
been  embodied  in  our  machine.  .  .  .  The  experiment  has 
awakened  great  interest  and  will  be  productive  of  good,  and 
result  in  closer  relations  with  our  employees."  The  United 
States  Printing  Company,  of  Cincinnati,  Ohio 
(labels  and  show-cards),  has  adopted  the  autographic  regis- 
ter plan,  and  is  "  very  much  pleased  with  the  results  ob- 
tained." 

F.  A.  Brownell,  manufacturer  of  photographic  appara- 
tus (in  connection  with  the  Eastman  Kodak  Company), 
Rochester,  N.  Y.,  employs  about  1,000  hands,  100  to  150 
of  whom  are  young  women.  The  young  women  help  are 
employed  entirely  on  the  first  story,  entirely  separate  from 
the  men,  who  occupy  the  basement  and  remaining  five 
floors.  The  young  women  have  a  dining-room  with  a  com- 
petent cook  in  charge,  who  furnishes  a  satisfactory  dinner 
each  day  at  a  price  of  sixty  cents  per  week,  which  is  con- 
siderably less  than  cost.  There  is  a  large  dining-room  on 
the  fourth  floor  for  men  and  boys  ;  their  kitchen  is  not  yet 
in  operation ;  they  bring  their  own  luncheons.  Adjoining 
the  dining-rooms  are  separate  libraries  and  reading-rooms 
for  the  men  and  young  women  ;  each  being  in  charge  of  a 
competent  librarian.  Connected  with  the  young  women's 
cloak-room  is  a  hospital  for  their  exclusive  use.  On  the 
sixth  floor  is  a  convenient  hospital  for  the  use  of  the  men 
and  boys.  All  employees  taken  suddenly  ill  or  injured 
are  given  immediate  aid,  and  a  surgeon  called,  or  they  are 
sent  to  a  physician  or  surgeon,  as  the  case  requires.  Racks 
are  placed  in  convenient  places  on  the  first  floor  for  the 


AMERICAN  LIBERALITY  TO   WORKMEN     293 

accommodation  of  the  young  women  who  ride  bicycles, 
while  a  system  of  bicycle  storage  is  provided  in  the  base- 
ment for  some  three  hundred  men  who  ride  wheels  to  and 
from  their  work.  The  basement,  which  is  a  light,  airy 
room  with  asphalt  floor,  is  also  being  fitted  up  with  lockers 
for  men  and  boys.  The  factory  was  built  on  the  mill- 
construction  plan,  with  very  large  windows  which  furnish 
excellent  light  and  ventilation.  The  building  is  heated  by 
hot  blast,  with  which  the  air  in  the  entire  factory  may  be 
entirely  changed  every  ten  to  twenty  minutes ;  the  same 
system  supplies  hot  air  in  the  winter  and  cold  air  for  ven- 
tilation in  the  summer.  In  December,  1898,  a  suggestion 
system  was  adopted.  Eight  prizes,  from  $5  to  $25  in 
amount,  were  to  be  offered  each  month.  A  number  of 
iron  post-office  boxes  are  located  at  convenient  points  about 
the  factory.  The  suggestions  are  written  on  blanks,  a  pad 
of  which  is  attached  to  each  box.  Three  prizes,  $20  to  $50, 
are  offered  for  the  best  suggestions  adopted  during  the 
year.  A  "  Prize  Awards  Bulletin  "  is  published  monthly, 
giving  the  suggestions  adopted,  the  prizes  awarded  and 
various  matters  relating  to  the  factory.  In  the  eight  months, 
December,  1898,  to  July,  1899,  the  number  of  suggestions 
made  varied  from  81  to  208  ;  from  one  eighth  to  one 
quarter  of  these  were  adopted.  From  money  not  given 
out  as  prizes  (because  of  insufficient  merit  in  the  sugges- 
tions) prizes  have  been  offered  for  those  offering  the  largest 
number  of  suggestions  adopted  but  not  winning  prizes. 

The  Bausch  and  Lomb  Optical  Company,  Roches- 
ter, N.  Y.,  adopted  in  May,  1899,  a  plan  for  inviting  sug- 
gestions, from  their  982  employees,  for  improvements  in 
regard  to  the  work,  the  finished  product  and  the  factory 
conditions.  Each  quarter  seven  prizes,  varying  in  size 
from  $5  to  $25,  are  offered  for  the  best  suggestions,  and  a 
grand  prize  of  $100  for  the  most  valuable  suggestion  of  the 
year.  Up  to  June  27,  forty-six  suggestions  were  received 
"  some  of  which  are  very  good."  The  J.  O.  Ayer  Com- 
pany, manufacturing  chemists,  of   Lowell,  Mass.,  has 


294  A  DIVIDEND  TO  LABOR 

recently  put  in  a  number  of  autographic  registering  ma- 
chines, and  offered  prizes  for  the  best  suggestions.  The 
A.  B.  Chase  Company,  makers  of  pianofortes  and  organs, 
Norwalk,  Ohio,  with  125  to  200  men,  offered  prizes  in 
February,  1899,  for  the  best  suggestions  for  improvements, 
economies  and  the  advancement  of  the  company  in  any 
direction.  In  the  next  four  months  the  company  "  received 
a  large  number  of  suggestions,  and  have  been  able  to  in- 
stitute many  profits  in  our  goods  and  in  process  of  manu- 
factui'ing."  The  Farrand-Votey  Organ  Company  and 
the  F.  H.  Sanborn  Company,  both  of  Omaha,  Neb., 
have  adopted  the  committee  systeni  of  management. 

The  Siegel-Cooper  Company,  department  store,  New 
York,  on  January  1, 1899,  presented  a  life-insurance  policy 
of  $1,000,  with  the  first  year's  premiums  paid  ($26,415), 
to  some  504  men,  who  had  served  a  year  or  more.  The 
president  of  the  company,  Mr.  Henry  Siegel,  outlined  a 
pension  fund  scheme  for  the  benefit  of  employees  showing 
ten  years  of  service.  The  endowment  fund  of  $200,000 
is  protected  by  a  life-insurance  policy  of  that  amount  taken 
out  by  Mr.  Siegel,  payable  at  his  death  or  on  maturity  of 
the  policy  in  1919.  As  the  store  has  been  in  operation  but 
three  years,  it  will  be  seven  years  more  before  this  scheme 
can  become  operative  ;  the  details  have  not  been  worked  out, 
but  the  general  plan  contemplates  pensions  equal  to  50 
per  cent,  of  the  employees'  income,  the  maximum  being 
$600. 

The  First  National  Bank,  of  Chicago,  HI., 
adopted  May  1,  1899,  a  plan  of  pensioning  officers 
and  employees,  which  is  modeled  on  that  of  the  Bank 
of  Montreal,  and  is  said  to  be  in  force  in  a  number 
of  banks  in  England  and  Canada.  Three  per  cent,  of 
wages  and  salaries  is  deducted  monthly,  and  pensions 
will  be  granted  after  fifteen  years  of  service  and  sixty 
years  of  age.    Retirement  is  to  be  usually  compidsory 


AMERICAN  LIBERALITY  TO   WORKMEN     295 

at  sixty-five  years.  In  case  of  voluntary  resignation 
or  dismissal,  all  payments  made  will  be  returned  with- 
out interest;  in  case  of  the  death  of  a  contributor 
who  has  not  been  fifteen  years  in  service,  and  leaves 
a  widow  or  children,  the  bank  may  grant  a  pension  or 
retui'n  to  the  estate  all  moneys  paid  in,  with  interest 
at  four  per  cent.  Members  whose  term  of  service  has 
been  under  twenty-five  years  at  retirement  will  be  en- 
titled to  a  pension  for  as  many  years  after  as  they  have 
served.  Others  will  be  entitled  to  pensions  for  life. 
The  widow  will  receive  half  her  husband's  pension 
until  re-marriage,  for  a  term  not  longer  than  his  term 
of  service :  and  if  she  dies  leaving  children,  they  shall 
receive  the  benefit  of  the  pension  until  the  youngest 
is  eighteen  years  old.  No  clerk  is  allowed  to  marry 
on  a  salary  of  less  than  f  1,000  a  year,  under  penalty 
of  dismissal.  The  pension  is  fixed  on  the  basis  of  one 
fiftieth  of  the  salary  at  superannuation  for  each  year 
of  service,  but  in  no  case  can  it  exceed  thirty-five 
fiftieths  of  the  salary.  A  clerk  on  a  $2,000  salary 
could  thus  retire  at  sixty  on  $600  a  year,  after  con- 
tributing i60  a  year  for  fifteen  years.  The  bank  has 
set  aside  a  considerable  sum  to  insure  the  adequacy  of 
the  fund,  and  wiU,  from  time  to  time,  charge  to  ordi- 
nary expenses  such  further  sums  as  may  be  needed. 
The  250  employees  of  the  bank,  from  the  ofiicers  to 
the  janitor,  have  all  become  members,  and  member- 
ship will  be  compulsory  hereafter.  The  National 
City  Bank,  of  New  York,  has  had  a  simpler  pension 
scheme  in  operation  for  two  years. 


PAKT  III 

A  DIKECT  DIVIDEND  TO  LABOR 

CHAPTER  IX 
FIVE   CASES    OF   PROFIT   SHARING 

We  Lave  already  met  several  instances,  in  our  sur- 
vey of  employers'  institutions,  in  which  there  is  a  more 
or  less  regular  practice  of  paying  a  dividend  to  the 
employee,  based  on  his  wages.  When  the  employer 
adopts  this  method  formally  and  embodies  it  in  a  set 
of  rules  and  regulations,  promising  to  give  the  bonus 
in  one  form  or  another,  not  to  the  whole  body  of  work- 
men collectively,  but  to  the  individual  workmen,  he 
enters  upon  the  system  usually  known  as  profit  shar- 
ing. After  the  detailed  treatment  given  to  this  sub- 
ject in  my  previous  volume  (1889),  I  need  only 
supplement  that  work  with  two  chapters  devoted  to 
the  developments  of  the  last  ten  years.  I  vdll  first 
ask  attention  to  one  French,  one  English  and  three 
American  instances,  in  which  the  system  has  had  an 
unusually  interesting  outcome,  and  will  give  some- 
what detailed  accounts  of  the  experience  of  the  five 
companies.  In  the  Baille-Lemaire  case  the  transition 
from  the  older  form  of  ownership  is  marked  by  novel 
features.  In  the  Bourne  Mills  the  conditions  were 
such  as  are  generally  supposed  to  be  peculiarly  adverse 
to  the  success  of  profit  sharing.     With  the  Procter 


FIVE  CASES  OF  PROFIT  SHARING        297 

and  Gamble  Company  we  meet  the  fullest  recognition 
of  the  right  of  the  workingman  to  an  explicit  dividend 
on  his  wages.  In  the  case  of  the  South  Metropolitan 
Gras  Company,  profit-sharing  employees  are  entitled 
to  vote  for  workman  directors  of  the  company.  With 
the  N.  O.  Nelson  Company  the  efPort  is  making  to 
convert  the  business  into  a  cooperative  enterprise. 

THE   MAISON   BAILLE-LEMAIRE. 

The  opera-glasses  made  by  the  Baille-Lemaire 
house  of  Paris  are  known  throughout  the  civilized 
world.  The  industrial  system  practiced  by  it  is  far 
from  having  had  the  same  wide  report,  but  this  de- 
serves to  be  signalized  among  the  leading  instances 
of  patronal  institutions  and  participation  which  have 
not  been  frequently  described.  Its  union  of  busi- 
ness sagacity  and  human  kindliness  was  recognized  in 
the  conferring  upon  it  of  one  of  the  five  gold  medals 
of  the  Prix  Audeoud,  given  in  1889  to  commercial 
establishments  of  great  merit. 

M.  A.  Lemaire  began  the  manufacture  of  opera- 
glasses  in  March,  1847,  on  a  very  modest  scale.  He 
started  with  one  apprentice  only,  and  after  several 
months  of  good  business  he  engaged  two  workmen, 
who  soon  left  him,  as  he  would  not  grant  an  un- 
warranted increase  of  wages  in  the  revolutionary  year 
1848.  (This  is  the  only  labor  trouble  that  the  house 
has  had  in  its  half  century  of  existence.)  Keeping 
only  two  apprentices  thereafter  until  1849,  M.  Le- 
maire took  into  partnership,  in  that  year,  his  cousin, 
M.  Daumas,  a  locksmith,  who  is  still  the  director  of 
the  workshops.  M.  Lemaire  was  a  skiUful  inventor 
of  new  processes,  and  his  work  was  recognized  by 


298  A   DIVIDEND   TO  LABOR 

the  various  expositions  in  prizes  awarded  to  his 
house,  which  grew  rapidly  and  numbered  about  one 
hundred  workmen  in  1860.  He  always  considered 
the  improvement  and  development  of  the  working 
force  to  be  a  matter  demanding  as  much  interest 
and  care  as  the  plant  of  the  establishment.  So,  in 
1861,  he  began  the  "  social  organization "  with  a 
school  for  apprentices,  which  was  followed  by  a  pre- 
mium-for-attendance  system  in  1869 ;  the  Aid  Fund 
(caisse  de  secours)  in  1865  ;  the  Retiring  Fimd  in 
1878  ;  VHarmonie  des  Ateliers  Lemaire  in  1881  ; 
profit  sharing  and  the  Committee  of  Direction  in 
1885,  and  T  Union  de  r:^pargne  in  1886.  M.  J.  B. 
Bailie,  a  graduate  of  the  Polytechnic  School,  became 
the  son-in-law  of  M.  Lemaire  in  1870,  and  his  de- 
voted collaborator  in  1871 ;  on  the  death  of  M.  Le- 
maire in  1885,  the  entire  ownership  and  direction 
passed  into  the  hands  of  M.  Bailie.  Three  years 
later  the  house  was  employing  twenty-five  apprentices 
and  some  five  hundred  workmen,  half  of  them  em- 
ployed in  the  shops  and  half  outside  on  the  parts  of 
opera-glasses  not  needing  any  motive  power  for  their 
making. 

M.  Lemaire  established  his  school  for  apprentices 
in  1861  in  order  to  solve  some  of  the  difiiculties 
which  the  decay  of  the  old  system  of  apprentice- 
ship had  caused.  These  difficulties,  both  intellec- 
tual and  moral,  were  such  as  to  impress  especially 
such  a  man,  deeply  aware  of  the  importance  of  keep- 
ing up  the  morale  of  his  house.  After  he  had 
brought  up  a  number  of  apprentices  as  he  himself 
had  been  trained,  the  growth  of  his  business  and 
the  increasing  difficulty  of  finding  workmen  faithful 


FIVE  CASES  OF  PROFIT  SHARING        299 

and  skillful  enough  to  manage  his  new  machinery, 
led  him  to  establish  his  boarding-school  for  appren- 
tices. The  boys  are  taken  at  thirteen  or  fourteen 
years  of  age  and  kept  until  seventeen  or  eighteen, 
the  whole  cost  of  their  food  and  lodging  being  at 
the  expense  of  the  firm.  A  small  sum,  enough  to 
excite  their  interest,  is  paid  them  at  first  as  wages, 
and  they  soon  receive  sufficient  to  relieve  their  par- 
ents of  all  expense.  Two  overseers  have  charge  of 
them  in  the  eleven  working  hours,  and  trusty  work- 
men keep  an  eye  on  them  at  other  times.  Two 
teachers  from  the  Parisian  schools  give  instruction 
in  the  evening,  chiefly  in  geometrical  drawing  as 
the  basis ;  but  attention  is  also  given  to  arithmetic, 
the  history  of  France,  natural  science,  hygiene  and 
practical  morals.  Each  evening  closes  with  a  read- 
ing by  a  pupil  from  some  interesting  book,  like  the 
romances  of  Erckmann-Chatrian  or  Jules  Verne, 
or  selections  from  Michelet.  A  taste  for  good  read- 
ing is  thus  formed  which  brings  about  a  steady  use 
of  the  library  of  the  school.  The  boys  enjoy  a  fort- 
night's vacation  each  year  at  M.  Bailie's  country 
seat.  Between  1861  and  1887  there  were  309 
minors  connected  with  the  school;  of  these,  eighty- 
seven  completed  the  full  course,  the  firm  placing  no 
obstacles  in  the  way  of  a  withdrawal  at  pleasure. 
Only  those  remaining  for  the  four  yefars,  however, 
were  admitted  to  the  shops,  and  the  firm  selected, 
of  course,  the  best  in  ability  and  character  for  its 
service.  Regular  pay  each  week,  admission  to  the 
aid  and  retiring  funds,  and  a  savings  account,  pay- 
able at  the  close  of  the  apprenticeship,  were  for- 
merly stipulated  for  each  minor,  but  are  now  optional 


300  A  DIVIDEND  TO  LABOR 

with  the  firm,  according  to  the  work  and  conduct 
of  each  boy. 

The  Baille-Lemaire  house  has  always  insisted  much 
on  steady  employment  of  its  plant  as  desirable  from 
the  point  of  view  of  self-interest ;  it  has  stopped  work 
as  little  as  possible,  preferring  to  do  work  in  advance 
of  orders,  and  to  take  other  measures  attended  by 
some  risk,  rather  than  shut  down,  even  for  a  short 
time.  Faithful  attendance  by  its  workpeople  being 
just  as  desirable  for  the  interests  of  the  house,  it 
began  in  1869  to  pay  a  premium  for  regularity. 
Every  workman  who  lost  less  than  three  hours  per 
week  received  seven  per  cent,  additional  on  his  wages  ; 
this  was  afterward  increased  to  ten  per  cent.  All  the 
workmen,  with  rare  exceptions,  now  earn  this  pre- 
mimn,  but  any  man  absent  three  successive  Mondays 
without  good  cause  is  dismissed.  To  avoid  acciden- 
tal stoppages,  harmful  to  all  concerned,  two  steam- 
engines  and  two  boilers  are  in  use,  so  that  there  is  no 
loss  of  time  for  the  usual  repairs  when  one  breaks 
down.  Work  has  been  interrupted  only  during  the 
siege  of  1870-71,  and  the  week  of  the  Commune  in 
May,  1871. 

The  Aid  Fund  (caisse  de  secours')  is  supported 
from  the  general  expense  account,  not  from  profits, 
it  being  a  cardinal  principle  with  the  Baille-Lemaire 
house  that  th'e  men  shall  be  kept  in  good  repair  as 
well  as  the  machinery,  at  the  expense  of  the  house. 
Besides  an  indemnity  of  three  francs  a  day  during 
sickness,  and  the  expense  of  medicines  and  medical 
attendance,  the  workman  is  entitled  to  receive  100 
fr.  on  his  marriage  ;  100  fr.  on  the  birth  of  each 
child,  and  50  fr.  on  the  decease  of  his  wife ;  100  fr. 


FIVE  CASES  OF  PROFIT  SHARING        301 

a  year  if  he  becomes  a  soldier,  and  a  certain  sum  per 
diem  while  on  reserve  service ;  at  his  death  100  fr. 
are  paid  to  the  widow,  and  50  fr.  for  each  child  under 
fifteen  years  of  age.  The  house  is  in  the  habit  of 
making  small  loans  without  interest  to  its  employees, 
even  to  those  who  have  savings  in  the  bank,  but  pre- 
fer to  make  use  of  the  loan  system. 

The  Retiring  Fund  (caisse  de  retraite)  was  founded 
in  1878.  Half  of  the  ten  per  cent,  premium  on  wages 
for  regular  attendance  is  paid  in  cash.  The  other 
half  goes  to  constitute  this  fund,  which  is  paid  into 
the  State  Retiring  Fund,  the  house  acting  simply 
as  an  intermediary,  to  hand  over  the  money,  semi- 
annually, on  inalienable  accounts.  The  operation  of 
the  fund  is  such  that  the  workman  who  receives  an 
average  of  forty  francs  a  week,  and  begins  to  deposit 
at  eighteen,  would  have  at  sixty  an  annuity  of  some 
1,500  fr.  This  was  the  return  when  interest  was 
five  per  cent. ;  the  rate  has  been  reduced  since,  but 
the  workman's  receipts  from  the  profits  will  increase 
his  savings.  From  1878  to  1888  the  total  deposits 
were  195,979  fr.,  of  which  11,400  fr.  were  extra 
savings  made  by  the  employees. 

MM.  Baille-Lemaire  were  of  the  opinion  that  the 
transformation  of  their  establishment  into  a  true 
cooperative  productive  house  would  have  various  in- 
conveniences. They  have  preferred  to  diminish  gen- 
eral expenses  as  far  as  possible,  even  to  the  extinction 
of  interest  on  the  capital  employed.  In  1885  they 
began  a  system  of  profit  sharing,  having  this  end  in 
view.  For  fifteen  years  (1885-1900)  the  profits 
were  to  be  divided  yearly  into  four  parts.  One  of 
these  is  apportioned  among  the  overseers  and  work- 


302  A  DIVIDEND  TO  LABOR 

men  ;  the  other  three  go  to  liquidate  (or  amortize) 
the  capital.  The  sums  liquidated  no  longer  bearing 
interest,  the  expenses  rapidly  decrease.  When  the 
entire  sum  is  amortized,  one  half  of  the  profits  will  go 
to  capital,  which  will  then  receive  no  other  remunera- 
tion, and  the  other  haK  to  the  working  people.  A 
deduction  wiU  first  be  made  in  favor  of  the  institu- 
tions of  the  house.  When  one  half  of  the  capital 
has  been  liquidated,  the  profits  are  to  be  divided  into 
three  parts,  two  of  which  shall  go  into  the  liquidation. 
This  house  will  thus  be  soon  in  a  unique  position. 
The  capital  in  it  will  do  its  work,  but  receive  no 
wages  and  only  one  half  of  the  profits.  M.  BaiUe 
will  still  be  master  and  proprietor,  and  he  will  be  free 
to  introduce  modifications  of  his  plan  if  he  should 
desire  to  do  so.  At  the  present  time  he  has  a  con- 
sulting committee  of  six  overseers ;  it  meets  frequently 
for  familiar  discussion  of  the  business,  each  overseer 
presiding  in  turn ;  they  thus  acquire  a  practical  know- 
ledge of  commercial  affairs.  The  transformed  house 
will  possess  a  very  desirable  elasticity  in  its  business 
relations. 

The  profit  sharing  proper  operates  in  this  way.  A 
deduction  is  first  made  for  rewards  for  improvements 
in  the  processes  of  the  work,  and  an  account  of  the 
year's  business  is  rendered  to  a  committee  of  direction. 
At  present  one  fourth  of  the  profits  are  divided  among 
the  workmen,  and  the  remainder  applied  to  the  liqui- 
dation of  the  capital.  When  this  process  has  been 
accomplished,  forty  per  cent,  of  the  profits  will  go  to 
the  workers,  forty  per  cent,  to  capital  (without  inter- 
est), and  twenty  per  cent,  to  endow  the  various  funds. 
Of  the  sum  now  going  to  the  working  force,  two  thirds 


FIVE  CASES  OF  PROFIT  SHARING        303 

falls  to  the  overseers  and  the  responsible  workmen, 
in  unequal  shares,  and  one  third  to  the  other  work- 
men, according  to  wages  and  seniority.  The  profits 
divided  annually  are  affected  by  the  varying  rate  of 
interest  allowed  to  capital,  from  three  to  six  per  cent., 
according  to  the  state  of  the  market,  and  by  payments 
to  the  reserve  fund.  When  an  employee  has  been 
twenty-five  years  in  the  service  of  the  house,  he  will 
receive  a  premium  running  from  100  francs  a  year  up 
to  a  possible  2,000  francs. 

An  attractive  feature  of  the  Baille-Lemaire  en- 
semble of  friendly  relations  between  master  and  men 
is  VHarmonie  des  Ateliers  Lemaire,  established  in 
1881  and  reorganized  in  1888.  This  society  of  the 
workers  who  have  musical  ability  admits  honorary 
members,  and  M.  Bailie  is  the  honorary  president, 
but  it  is  governed  by  its  own  conunittee ;  self-govern- 
ment here,  as  everywhere  else,  says  M.  Bailie,  tends 
to  moderation  and  tolerance.  There  are  three  re- 
unions every  year  in  the  house,  at  all  of  which  the 
Harmonic  Lemaire  contributes  greatly  to  the  general 
enjoyment.  New  Year's  day  the  workmen  and  their 
families  call  upon  the  head  of  the  house,  in  turn,  and 
gifts  are  distributed  to  the  children.  A  summer 
festival  is  held  on  a  pleasant  afternoon  at  M.  Bailie's 
country  seat.  In  the  winter  the  Harmonic  Lemaire 
gives  a  banquet  and  ball,  at  which  M.  Bailie  and  his 
family  assist.  There  is  no  thought  of  patronizing  on 
their  part ;  but  these  social  events  are  friendly  meet- 
ings of  a  large  industrial  family,  in  which  M.  BaiUe 
declares  that  he  tastes  his  highest  and  purest  plea- 
sure. Even  when  the  master's  wine  flows  freely  there 
has  been  no  excess  or  impropriety.      The  American 


304  A   DIVIDEND   TO  LABOR 

reader  who  has  seen  them  will  be  reminded  of  the 
reunions  of  the  Riverside  Press  at  Cambridge,  and  of 
the  Procter  and  Gamble  employees  at  Ivorydale,  near 
Cincinnati. 

The  Union  de  I'Epargne  was  established  volun- 
tarily by  the  Baille-Lemaire  workmen  in  1885,  and 
is  under  their  own  control.  Each  member  pays  in 
from  one  to  five  francs  weekly ;  at  the  end  of  three 
years  the  property  of  the  union  was  45,697  fr.  25  c. 
This  association  is  regarded  by  the  proprietor  of  the 
house  as  one  of  the  strongest  evidences  of  the  success 
of  his  far-sighted  plans.  The  best  of  feeling  reigns 
in  the  establishment,  and  M.  Bailie  considers  his 
prosperity  as  due  to  the  gradual  development  of  the 
admirable  institutions  we  have  briefly  sketched.  ^ 

THE    BOURNE   MILLS. 

A  striking  illustration  of  what  profit  sharing  can  do 
may  be  found  in  a  line  of  industry  in  which  the  rate  of 
compensation  to  the  worker  is  not  high,  comparatively, 
in  which  the  first  cost  of  the  plant  is  large,  and  the 
importance  of  hand  labor  by  the  side  of  machinery  is 
low,  and  in  which  the  average  grade  of  intelligence  is 
not  up  to  the  common  level  of  the  environing  society. 
The  Bourne  cotton-mills  of  Fall  River,  Mass.  (the  mills 
are  just  over  the  state  line  in  Tiverton,  R.  I.),  supply 
all  these  conditions,  which  will  at  once  be  recognized 
as  in  themselves  unfavorable  to  any  high  degree  of 
success  in  the  application  of  profit  sharing.  The  in- 
telligence and  "  animated  moderation  "  with  which  the 

*  This  account  is  based  upon  M.  Bailie's  Notices  of  his  Institutions 
Patronales,  published  in  the  Bulletin  de  la  Participation  aux  Bdnifices 
for  1890,  pp.  21-62. 


FIVE  CASES   OF  PROFIT  SHARING         305 

idea  has  been  applied  there  have,  however,  made  this 
experiment  one  of  the  most  successful  instances  on 
record.  It  has  these  distinct  excellences  as  an  illus- 
tration of  the  possibilities  of  industrial  partnership,  — 
that  it  is  of  recent  date,  while  it  has  yet  been  in  force 
long  enough  (ten  years)  to  give  assurance  of  sta- 
bility ;  that  it  has  been  subject  to  disadvantages  from 
which  many  occupations  are  free,  such  as  the  compara- 
tive unintelligence  of  the  French  Canadian  workers, 
now  so  important  a  force  in  New  England  factory 
towns ;  and  that  it  has  been  conducted  through  six 
years  of  prosperity  and  four  of  extreme  depression, 
while  subject  to  continuous  hostile  criticism  from  the 
other  mill-owners  of  the  city. 

Mr.  Jonathan  Bourne,  the  first  president  of  the 
Bourne  mills,  had  long  been  a  whaling  merchant,  and 
was  familiar  with  the  usual  custom,  which  works  so 
weU  in  whaling  and  sealing,  of  giving  the  men  on 
each  vessel  a  "  lay,"  or  share  in  the  profits  of  the 
product.  After  two  years  of  handsome  dividends  in 
the  new  mills,  and  a  year's  careful  consideration  of  the 
scheme,  the  directors,  through  Mr.  George  A.  Chace, 
the  treasurer,  issued  a  circular  May  23,  1889,  an- 
nouncing that  profit  sharing  would  be  adopted  for 
the  six  months  beginning  July  1.  Mr.  Bourne  died 
a  month  later,  and  the  directors  have  pursued  a  very 
conservative  course  ever  since  in  regard  to  their  time 
limit.  Every  six  months  the  plan  was  readopted  for 
six  times,  before  a  whole  year's  experiment  was  sanc- 
tioned :  in  the  entire  ten  years  a  favorable  vote  for 
continuance  has  been  given  fourteen  times.  The  di- 
rectors, while  actuated  by  feelings  of  good-will  toward 
their   employees,   adopted   and    have   continued   the 


306  A  DIVIDEND  TO  LABOR 

profit-sharing  method,  not  as  philanthropy,  but  as 
"  good  business,"  operating  for  the  benefit  of  all  con- 
cerned. The  treasurer  has  taken  pains,  in  his  regidar 
communications  to  the  working  force,  to  emphasize  the 
duty  of  every  employee  to  contribute  his  share  toward 
the  best  possible  operation  of  the  mills.i 

Every  employee  of  the  400  or  more,  who  has  served 
six  months  and  worked  faithfully  during  the  term  of 
this  scheme,  has  a  share  in  the  profits  "  in  proportion 
to  the  dividends  declared  and  paid  to  the  stockliold- 
ers."  The  share  is  paid  as  a  dividend  upon  the  wages 
earned.  A  sum  amounting  to  not  less  than  six,  nor 
more  than  ten  per  cent,  of  the  amount  paid  to  the 
stockholders  (the  percentage  being  determined  by  the 
directors)  is  divided  by  the  largest  total  wages  which 
the  force  can  earn  in  six  months.  This  gives  the 
percentage  on  wages  to  be  paid  to  each  worker.  His 
"  divvy,"  as  the  men  call  it,  varies  thus  according  to  his 
whole  wages.  The  average  of  the  twenty  semi-annual 
dividends  on  wages  for  the  ten  years  has  been  3.3  per 
cent.  (2  was  the  lowest,  and  7  per  cent.,  paid  once, 

^  Mr.  Chace  writes  thus  in  August,  1899 :  "  Profit  sharing  has 
been  voted  upon  by  our  board  of  directors  now  fourteen  times,  and 
no  dissenting  vote  has  ever  been  recorded.  Neither  have  I  ever  re- 
ceived or  heard  of  any  opposition  to  it  upon  the  part  of  any  of  our 
stockholders.  I  have,  on  the  contrary,  on  various  occasions,  obtained 
information,  either  directly  or  indirectly,  to  the  effect  that  it  was  a 
pleasing  experiment  to  them.  Some,  of  course,  look  upon  it  favora- 
bly from  a  philanthropic  standpoint,  and  are  gratified  to  believe  that 
a  profitable  investment  in  which  they  are  personally  interested  is 
being  used,  as  they  think,  to  advance  the  condition  of  employees  and 
promote  better  feeling  between  capital  and  labor,  while  others  regard 
the  venture  in  a  purely  business  w-ay,  and  conclude  from  the  results, 
in  the  comparative  returns  of  dividends  upon  capital,  that  it  is  a 
profitable  method  of  employment  of  workmen,  and  hence  they  too 
are  pleased." 


FIVE  CASES  OF  PROFIT  SHARING        307 

the  highest :  3,  or  a  little  over,  was  the  usual  rate),  — 
66  per  cent,  in  all.  The  average  wages  of  aU  the 
employees  were  10  per  cent,  greater  in  1897  than  in 
1889,  though  the  standard  price  of  wages  was  higher 
then  than  in  1897  (except  for  mule-spinning),  and  the 
mills  ran  two  hours  more  a  week :  the  tendency  has 
been  uniformly  to  increase.  Employment  has  been 
almost  constant  in  the  Bourne  miUs  for  these  ten 
years,  —  "  reaUy  the  greatest  advantage  of  all  "  to  the 
employee,  says  the  treasurer.  Stoppages  amounted 
to  only  3  per  cent,  of  the  maximum  full  time. 

Between  1889  and  1895,  inclusive,  the  Bourne  mills 
paid  nearly  twice  as  large  dividends  as  its  competitors, 
—  a  fact  largely  due  to  profit  sharing,  it  is  reported, 
and  sufficiently  explanatory  of  the  treasurer's  state- 
ment in  July,  1897,  that  the  plan  has  never  "been 
more  satisfactory  than  at  the  present  time."  Mr. 
Chace  has  always  warned  the  employees  and  the  gen- 
eral public  against  expecting  too  much  from  the  new 
method.  But,  "  within  certain  bounds,  imder  favora- 
ble conditions,  it  is  worth  the  trial  of  any  fair-minded 
man  of  business,"  he  has  recently  said  in  print.  A 
secret  vote  of  the  employees  on  the  continuance  of  the 
system  was  taken  in  November,  1895.  It  showed 
but  six  ballots  against  the  system,  while  several  hun- 
dred believed  it  an  advantage  to  themselves  and  a 
benefit  to  the  corporation.  One  conscientious  work- 
man voted  "  No  "  because  he  felt  that  the  corporation 
did  not  receive  a  full  equivalent  for  the  bonus ! 
^  Mr.  Chace,  who  has  taken  great  pains  to  educate 
the  employees  in  a  right  understanding  of  the  system, 
issued  a  circular  in  December,  1895,  giving  the  result 
of  the  ballot  of  the  month  before,  and  continuing 


308  A  DIVIDEND  TO  LABOR 

thus :  "  The  plan  has  now  been  in  practice  long 
enough  for  all  to  understand  that  it  means  a  sum  of 
money  to  every  one  who  conforms  to  the  simple  con- 
ditions during  a  term  of  six  months.  I  can  assure 
you  that  I  pay  this  money  to  you  as  heartily  as  I  pay 
the  dividends  upon  which  it  is  based  ;  and  I  am  glad 
to  be  able  to  add  that  never  has  an  objection  or  mur- 
mur reached  me  from  a  stockholder  on  account  of  it 
since  the  plan  was  adopted,  nearly  seven  years  ago. 
It  seems  no  more  than  right,  however,  that  it  should 
be  made  clear  to  every  one  expecting  a  share  in  the 
profits,  that  there  is  no  intention  on  our  part  to  make 
a  free  gift  of  money  for  nothing,  but  rather  that  every 
payment  is  the  carrying  out  of  a  distinct  agreement  or 
contract,  under  which  both  parties  to  it  are  hoping  for 
mutual  benefit.  To  emphasize  this  point,  in  future 
all  persons  whose  names  are  entered  on  the  profit- 
sharing  rolls  will  agree  to  and  sign  the  following  con- 
tract, which  has  been  printed  on  cards  for  that  pur- 
pose, namely :  — 

Treasurer  Bourne  Mills: 

Please  enter  my  name  in  the  profit-sharing  roll  for  the 
term  ending  June  13,  1896,  upon  the  conditions  named  and 
hereby  agreed  upon  ;  namely,  that  I  will  endeavor  through- 
out the  term 

(1)  To  do  faithful  service  as  an  employee  of  the  cor- 
poration. 

(2)  To  promote  its  interests  as  far  as  my  acts  and  in- 
fluence go,  both  in  and  out  of  the  mill  (knowing  that  its 
success  will  contribute  to  my  own  welfare,  too). 

(3)  To  deposit  some  sum  of  money  every  month,  if 
possible,  in  the  Employees'  Savings  Fund  or  in  some  savings- 
bank, 

it  being  further  agreed  that   I   shall  forfeit  all  claim  to 


FIVE  CASES  OF  PROFIT  SHARING        309 

any  share  of  the  profits  if  any  of  these  conditions  is 
infringed. 

"  The  signing  of  this  agreement  on  the  part  of  those 
who  want  to  share  in  the  profits  of  the  next  six  months 
is  simply  putting  in  writing  what  has  been  understood 
all  along  ;  and  every  one,  every  man,  woman,  and  child 
in  our  employ,  is  just  as  cordially  invited  to  parti- 
cipate as  ever  before.  I  would  like  to  enter  every 
name  on  the  pay-roll  in  the  profit-sharing  roll  also. 
I  appreciate  the  interest  that  has  been  taken  by  a 
great  many  of  you  during  the  past  nearly  seven  years 
in  promoting  the  success  of  the  Bourne  mills  ;  and, 
while  we  can  hardly  hope  that  seven  more  fat  years 
will  follow,  I  am  here  to  do  the  best  I  can,  and  that 
is  all  I  will  ask  of  any  one  of  you." 

A  sign  of  the  liberal  spirit  in  which  the  Bourne 
mills  interpret  the  three  conditions  given  above  is  the 
following  notice  sent  to  a  number  of  employees  in 
December,  1895.  "  The  directors  regret  to  remind 
you  that  you  forfeited  your  dividend  September  23, 
by  quitting  work  without  obtaining  permission.  As 
it  might  seem  harsh,  however,  to  cut  off  the  whole  of 
it  under  the  circumstances,  they  have  restored  to  you 
under  the  form  of  a  gratuity  [5  per  cent,  on  wages]  a 
sum  larger  than  any  dividend  paid  you  heretofore, 
though  not  as  much  as  you  might  have  received  ex- 
cept for  your  action  at  that  time." 

Another  letter  of  the  treasurer  to  the  employees, 
under  date  of  July  1,  1897,  spoke  of  the  great  de- 
crease in  the  number  of  "  seconds  "  made  in  the  mills 
under  profit  sharing  (a  reduction  from  five  to  one)  ; 
and  this,  too,  "  means  an  improvement  in  the  general 
quality."     These  results  "  are  not  the  spasmodic  out- 


310  A  DIVIDEND  TO  LABOR 

come  of  an  experiment  just  begun,  but  the  daily 
routine  after  eight  years  of  experience."  The  super- 
intendent and  the  treasurer  united  in  declaring  that 
"it  has  been  a  pleasure  rather  than  a  task  to  do 
business  under  these  conditions  the  last  eight  years." 

THE   PROCTER   AND   GAMBLE    COMPANY. 

The  Procter  and  Gamble  Company  (established  in 
1837  and  incorporated  in  1890,  with  -$4,000,000 
capital)  manufactures  soap,  candles  and  glycerine,  at 
Ivorydale,  seven  miles  north  of  Cincinnati,  Ohio.^ 
Here  the  company  has  some  thirty  large  buildings ; 
the  architect,  Mr.  Beman,  had  been  the  architect  of 
Pullman,  111.  "  The  result  of  his  labor  ought  to 
satisfy  the  aesthetic  taste  even  of  the  fastidious.  Rus- 
kin  himself  could  hardly  be  displeased  with  it.  A 
genuine  attempt  has  been  made  to  apply  the  prin- 
ciples of  art  and  to  beautify  the  daily  surroundings  of 
the  people."  The  company  has  every  convenience 
and  facility  for  the  economical  manufacture  and  trans- 
portation of  its  products  that  modern  art  and  science 
can  supply,  in  the  way  of  the  finest  machinery,  rail- 
way tracks  and  locomotives  of  its  own,  and  the  utili- 
zation of  all  waste  matters.  There  are  some  600 
workpeople  at  Ivorydale,  and  100  more  in  the  Cin- 

1  The  authorities  for  this  account  are  Professor  F.  W.  Blackmar,  of 
the  University  of  Kansas,  in  an  article  in  the  Forum,  of  New  York, 
for  March,  1895,  on  "  Two  Successful  Examples  of  Profit  Sharing  ;  " 
another  article,  "  An  Experiment  in  Profit  Sharing,"  by  Mr.  W.  C. 
Procter,  of  the  company,  in  the  New  York  Independent,  for  May  2, 
1895,  and  a  third  by  Mr.  I.  W.  Howerth,  of  the  University  of  Chicago, 
in  the  American  Journal  of  Sociology  for  July,  1896,  on  "  Profit 
Sharing  at  Ivorydale."  Messrs.  Blackmar  and  Howerth  studied  the 
subject  on  the  spot,  as  I  have  also  done,  beside  receiving  communi- 
cations from  the  company. 


FIVE  CASES  OF  PROFIT  SHARING        311 

cinnati  office  and  on  the  road.  Soap-making  does  not 
demand  much  skilled  labor  :  wages  are  comparatively 
low  for  this  reason,  averaging  $10  per  week  for  men, 
$4.75  for  women,  and  $3.50  to  $7  for  boys ;  in  the 
wrapping  department  the  girls  are  on  piece-work. 

The  firm  had  much^trouble  with  its  employees,  who 
were  mostly  ordinary,  unskilled  laborers,  in  the  year 
1886  ;  thefe^were^Tourteen  stiikeskinvolving  from  TT 

to'TIi  wnrlcprs  ;  thfty  wppp.  ffvr  ^^  all  Rnrfa  nt  filjvial 
causes.''       It  adnptpd  jtrnfit  sharing  in    1  SRXgJirwtrrlpr 

to  secure  relief  and  establish  friendly  relations  with 
the  employees.  The  plan  gave  a  reasonable  salary 
($4,000)  to  each  active  member  of  the  firm,  as  a 
portion  of  the  expenses.  The  net  profits  were  divided 
between  the  firm  and  the  employees,  in  the  propor- 
tion that  the  wages  paid  bore  to  the  whole  cost  of 
production.  If  the  business  done,  for  example,  was 
$100,000,  the  net  profits  $10,000,  and  the  wages 
$20,000,  then  two  ninths  of  $10,000  went  to  the 
workpeople  and  seven  ninths  to  the  company,  wages 
being  that  proportion  of  the  cost  of  production 
($100,000  -  $10,000  =  $90,000).  Three  months'  ser- 
vice only  was  required  as  a  condition  of  participation, 
some  seventy-five  boys  and  girls  earning  less  than 
$4.50  a  week  being  excluded.  "  The  plan  was  ac- 
cepted by  the  employees  in  a  half-hearted  way  and 
without  any  belief  that  it  would  be  of  material  bene-  - 
fit."  But  the  first  six  months  gave  a  dividend  in 
October,  1887,  of  13.47  per  cent,  on  wages,  one  person 
receiving  $275  ;  the  second  dividend  was  11.80  per 
cent.,  and  the  third  9.33  per  cent.  There  was,  how- 
ever, but  a  slight  and  temporary  increase  of  interest 
among  the  workpeople,  immediately  after  the  distri- 


312  A  DIVIDEND   TO  LABOR 

bution.  In  October,  1889,  to  put  an  end  to  this  in- 
difference, the  company  divided  them  into  four  classes. 
Those  who  tried  to  prevent  waste  and  do  better  work 
and  to  advance  the  interests  of  the  business  were  to 

Jbe  paid  twice  the  regular  dividend.  The  bidk  of~the 
employees  should  receive  this  regular  dividend.  Those 
who  did  not  show  much  interest  were  cut  down  to  one 
half,  and  the  careless,  indifferent  and  wasteful  were 
to  receive  no  bonus  whatever.^  As  a  result,  probably, 
of  this  wise  classification,  the  dividend  of  April,  1890, 
rose  to  15.57  per  cent.  (That  of  April,  1889,  had 
been  12.13  per  cent,  and  that  of  October,  1889, 
12.50  per  cent.)  The  average  for  three  years  was 
12^  per  cent.  Carelessness  gradually  diminished,  and 
one  of  the  directors  could  say,  that  "  indifference  has 
entirely  disappeared." 

In  July,  1890,  when  the  firm  became  a  stock  com- 

^pany,  the  prospectus  promising  12  per  cent,  on  the 
common  stock,  if  earned,  the  plan  was  changed  so  far 
as  to  pay  the  workmen  the  same  dividend  on  wages 
as  the  common  stock  earned.  A  stockholder  having 
$500  worth  of  stock  and  an  employee  earning  i500  a 
year  receive  $60  each,  12  per  cent,  having  been  paid 
since  January,  1891.  The  number  of  employees  par- 
ticipating has  risen  from  225  in  1887  to  550  in 
January,  1899,  being  fully  92  per  cent,  of  the  whole 
number.  The  right  to  deny  the  dividend  for  cause  is 
reserved  by  the  company,  but  the  classification  has 
been  given  up,  having  accomplished  the  desired  effect. 
Any  waste  or  loss  of  material,  due  to  carelessness  or 

^  The  whole  amount  of  the  bonus  was  not  affected  by  the  number 
sharing  ;  the  share  of  the  debarred  employee  went  to  the  others : 
under  a  later  arrangement,  to  the  pension  fund. 


FIVE  CASES  OF  PROFIT  SHARING        313 

neglect  by  an  employee,  is  charged  against  his  divi- 
dend, as  when  a  laborer  climbed  upon  an  engine, 
where  he  had  no  right  to  be,  and  puUed  the  throttle, 
and  the  engine  demolished  a  wall  in  front.  Only  four 
men  had  any  charges  against  them  in  the  last  half  of 
1895,  carefulness  having  much  increased. 

The  employee  is  encouraged  to  become  an  owner  of 
stock.  If  he  makes  a  written  application,  inclosing 
$10,  the  company  will  buy  for  him  a  share  of  common 
or  preferred  stock  at  the  market  price;  he  must 
finish  the  payment  within  two  years,  by  installments 
of  f5,  or  multiples  thereof.  The  company  charges 
interest  at  4  per  cent,  on  the  unpaid  balance,  taking 
this  out  of  the  dividends  on  the  stock,  which  it  holds 
as  security ;  equitable  arrangements  are  made  in  case 
cancellation  of  such  an  engagement  is  desired.  Eighty 
workpeople  have  taken  191  shares  so  far,  70  being 
bought  by  as  many  different  persons.  "Under  an 
earlier  plan  over  1,000  shares,  which  are  now  nearly 
paid  for,  were  taken  by  the  clerical  force  and  fore- 
men." In  order  to  induce  the  employees  to  become 
stockholders  more  generally,  the  company,  which  be- 
lieves firmly  in  this  method  of  cooperation,  is  intend- 
ing to  guarantee  them  against  loss  by  making  their 
stock  a  first  lien  upon  the  property.  "  A  most 
marked  improvement,"  says  one  of  the  firm,  "  is 
shown  by  those  who  have  purchased  stock,  not  only  in 
their  ability  as  employees  of  the  company,  but  in  the 
general  character  of  the  men." 

A  pension  fund  was  established  in  1894.  Five 
hundred  dollars  are  semi-annually  set  aside  for  it,  half 
being  from  the  bonus  and  half  paid  by  the  company. 
The  president  of  the  company  is  the  chief  trustee,  and 


314  A  DIVIDEND  TO  LABOR 

the  four  others  are  employees  elected  annually.  If  at 
any  time  they  find  the  income  in  excess  of  the  amount' 
needed,  they  can  discontinue  the  above  payments  for 
a  season.  A  pensioner  must  have  been  seven  years  in 
service  before  permanent  disability,  partial  or  total, 
has  been  caused  by  accident,  sickness  or  old  age.  No 
pension  can  exceed  75  per  cent,  of  the  average  wages 
earned  in  the  last  two  years  of  service.  The  company 
provides  work,  such  as  they  are  able  to  perform,  for 
those  entitled  to  a  pension,  and  the  fund  pays  a 
further  sum,  large  enough  to  make  the  whole  amount 
received  equal  to  their  former  average  wages.  The 
fund  amounted  to  $2,608.90  in  January,  1896,  with 
only  one  pensioner,  and  $6,203.09  in  January,  1899, 
with  one  pensioner  still. 

About  one  half  of  the  employees  live  near  Ivory- 
dale,  but  the  company  has  only  a  few  houses  let  to 
them,  as  it  prefers  to  have  them  independent,  rents 
being  low.  A  building*  association,  however,  has  been 
in  successful  operation  nine  years,  and  is  now  useful  as 
a  savings-bank  "  in  which  many  of  the  employees  have 
neat  balances  to  their  credit."  A  cooperative  grocery 
was  unsuccessful,  as  the  employees  Kving  near  failed 
to  take  interest  in  it  after  one  year.  A  library  and 
reading-room,  with  rooms  for  smoking  and  card-play- 
ing, provided  by  the  company,  has  not  been  much  ap- 
preciated by  the  employees,  who  have  many  mutual 
aid  clubs  and  prefer  associations  outside  of  the  group 
in  which  they  work.  The  company  hopes  for  an  in- 
crease of  good  residts  with  the  development  of  social 
and  intellectual  life,  toward  which  the  Saturday  half 
holiday,  without  loss  of  pay,  will  contribute.  The 
semi-annual  distribution  gives  in  addition  two  full  holi- 


FIVE  CASES  OF  PROFIT  SHARING         315 

days  —  "  dividend  days  "  —  devoted  to  games,  sports 
and  a  general  meeting  addressed  by  several  speakers, 
in  which  the  employees  take  great  pride.  In  case  of 
accidents  from  the  machinery  (so  well  guarded  that 
these  are  few)  the  employee  receives  full  pay  while 
recovering.  A  physician's  care  is  provided  free  by 
the  company,  and  there  is  a  distribution  of  turkeys 
at  Christmas,  one  to  each  family  represented.  ^^      ^ 

^     The  company  has  secured  relief  from  labor  troubles        \ 
by  its  profit-sharing  scheme  and  its  friendly  disposi- 
tion toward  the  employees,  shown  in  so  many  ways  ;  it         1 

has  had  no  strikes  or  serious  difficulties  since  1887. j 

"We  believe  that  it  would  be  impossible  to  foment 
any  such  trouble  among  them  now.  On  several  oc- 
casions some  troublesome  fellow  has  tried  to  produce 
dissatisfaction.  The  men  themselves  have  gone  to 
the  foreman,  with  details  of  the  attempt,  and  the 
suggestion  that  the  disturber  be  discharged."  "  The 
expense  of  breaking  in  new  men  has  also  been  almost 
done  away  with ;  "  the  average  change  in  a  year  is  not 
more  than  a  dozen  persons,  positions  being  desired 
by  the  employees  for  friends,  who  are  usually  better 
hands  than  the  casual  applicants.  A  system  of  pro- 
motion encourages  the  ambitious  and  further  tends  to 
stability.  About  50  per  cent,  of  the  force  received 
the  whole  seventeen  bonuses  to  January,  1896,  and 
about  90  per  cent,  received  twelve. 

The  saving:  of . labor  at  Jvorydale_hasJ][efin.  consider- 
able.  In  1894  the  labor  cost  ^f__maiiijfacture^  (in- 
cluding the  12  per  cent,  bonus^^was  68  per  cent,  nf 
what  it  was  in  1886  ;  wages  were  12  per  cent,  higher. 
A  conservative  estimate,  allowing  28  per  cent,  of  the  | 
37  gained  to  improved  methods  of  manufacture,  Ipavpa       , 


316  A   DIVIDEND   TO  LABOR 

a  saving  of  9  per  cent.,  plus  the  increased  wages^or  12 
per  cent,  cheaper  labor  cost  to  be  attributed  to  profit 
sharing.     Some  of  these  improved  methods,  such  as\ 
those  in  soap-cutting  machinery  are  due  to  the  interest  \ 
of  the  workmen,  who  are  concerned  about  the  character  / 
of  the  goods  made  and  the  reputation  of  the  company.  \ 
With  such  workmen  there  is,  of  course,  a  saving  in 
oversight.     The  saving  in  material  is  also  sure,  though 
difficult  to  determine  exactly.    Scraps  and  small  pieces  \ 
of  soap  used  to  fall  upon  the  floor  and  accumulate  so  W 
that  it  had  to  be  worked  over  every  two  or  three  weeks  ;  [1 
now,   this    is   necessary  only  once    in    three  or  four  \ 
months.    There  is  a  "  general  air  of  tidiness  and  clean- 
liness about  the  factories."     The  saving,  under  profit 
sharing,  to  the  company  "  is  largely  in  excess  of  the 
sum  paid  to  wage-earners  as  profits  ;  "  the  plan  has  ex- 
ceeded their  expectations :  "  profit  sharing,"  says  one 
member,  "  has  proved  to  be  good  for  both  employer  and 
employee."    The  patience  of  the  company,  in  educating 
their  employees  up  to  appreciation  ^fthe  plan,  has 
had  its  just  reward.     The  first  two  years  bTOUght_no 
equivalent    returns    for   the   bonus,  but  -  ErocterL  and 
Gamble  believed  that  the  plan  woidd  be  advantageous 
from  a  money  point  of  view  ;  anrlj  wjtb  all  ih^v  kinrl- 
liness,  which  is  manifest  from  this  account,  they  have 
been  justified  in  this  belief.     The  company  understand 
the  logic  of  profit  sharing  and  have  never  supposed  they 
would  have  a  claim  on  the  workmen  in  case  of  losses 
to  which  they  contributed  in  no  degree.     The  moral 
benefits  to  the  employees  are  very  recognizable.     Pro- 
fit sharing  at  Ivorydale  has  been  a  school  of  thrift 
and  carefulness. 


FIVE  CASES  OF  PROFIT  SHARING        317 
THE   SOUTH   METROPOLITAN   GAS   COMPANY. 

In  one  respect  the  profit-sharing  scheme  of  the 
South  MetropoHtan  Gas  Company  of  London  is 
unique,  for  it  has  on  its  board  of  directors  two  work- 
men shareholders  elected  by  their  fellows.  The  com- 
pany has  a  capital  of  X7,000,000  ;  its  annual  receipts 
are  about  one  tenth  of  this  amount,  and  it  employs 
nearly  3,000  men ;  it  is  said  to  supply  some  88,000 
workmen's  houses  with  gas  through  metres  worked 
on  the  penny-in-the-slot  system.  The  present  man- 
ager, Mr.  George  Livesey,  and  his  father,  Mr.  Thomas 
Livesey,  who  was  his  predecessor  in  office,  have 
labored  consistently  and  persistently  to  improve  the 
condition  of  the  employees.  A  quarter  of  a  century 
ago  the  company  gave  the  men  a  week's  holiday,  an- 
nually, with  pay :  a  few  years  later  this  was  doubled, 
to  employees  of  three  years'  standing.  An  aid  fund 
and  a  superannuation  fund  are  due  to  Mr.  T.  Livesey's 
initiative.  Twelve  shillings  a  week  benefit  and  medi- 
cal attendance  are  given  in  sickness  for  thirteen  weeks : 
in  case  of  need,  the  term  is  extended  another  three 
months.  The  disabled  workmen  receive  pensions  vary- 
ing from  ten  to  sixteen  shillings  a  week,  according  to 
length  of  service.  Each  employee  must  contribute 
three  pence  a  week  to  each  of  these  funds,  and  the 
company  makes  a  heavy  contribution.  "  The  com- 
pany was  active  in  the  abolition  of  Sunday  day-labor 
in  gas  works,  and  gave  its  men  this  exemption  with- 
out solicitation  from  them."  The  eight-hour  day  was 
granted  in  1889,  with  an  increase  of  wages  estimated 
at  twenty-five  per  cent. 

The  dividends  of  the  company  were  determined  by 


318  A  DIVIDEND   TO  LABOR 

Parliament  in  1876  on  a  sliding-scale  basis.  The 
standard  price  of  gas  is  taken  as  3s.  6d.  per  thousand 
feet ;  and  the  standard  dividend  is  four  per  cent.  For 
every  reduction  of  one  penny  in  the  price  of  gas,  the 
company  may  increase  its  dividend  one  quarter  of  one 
per  cent.  Mr.  George  Livesey  wished  to  include  the 
workmen's  wages  in  this  scheme,  but  was  not  able  to 
carry  out  his  plan.  In  1886  a  profit-sharing  system 
was  adopted,  to  take  in  the  officers  and  the  foremen, 
and  in  1889  it  was  extended  to  the  workmen.  For 
every  penny  gained  in  the  reduction  of  the  price  of  gas 
below  2s.  8d.  per  thousand  feet,  a  bonus  of  one  per 
cent,  on  wages  and  salaries  was  to  be  paid.  Four  per 
cent,  interest  would  be  paid  to  workmen  leaving  their 
bonus  on  deposit ;  the  scheme  was  dated  back  three 
years,  to  the  benefit  of  nearly  all  the  men.  "  This 
'  nest-egg '  was  equal  to  eight  per  cent,  on  the  year's 
wages  of  those  who  had  been  with  the  company  three 
years.  This  smn  was  to  remain  at  interest  for  three 
or  five  years."  The  men  were  required  to  sign  an 
agreement  to  serve  twelve  months ;  in  order  to  pre- 
vent their  leaving  together,  the  agreements  were  vari- 
ously dated.  1 

These  favors  to  the  men  were  won  by  Mr.  Livesey 
from  the  directors  largely  because  of  the  formation  of 
the  Gas  Workers'  Union,  in  1889,  under  the  inspira- 
tion of  the  successful  dock  strike.  The  gas  workers' 
strike,  December  13,  1889,  to  February  4,  1890, 
though  unsuccessful,  was  followed  by  threats  which 
caused  Mr.  Livesey  to  make  non-membership  in  the 

^  The  Conspiracy  and  Protection  of  Property  Act  of  1875  punishes 
•with  fine  or  imprisonment  persons  employed  in  gas  works  who  break 
a  contract  of  service  under  certain  circumstances. 


FIVE  CASES  OF  PROFIT  SHARING        319 

Gas  Workers'  Union  or  the  Coal  Porters'  Union  a 
condition  of  profit  sharing.  In  1892  Mr.  Livesey 
said  before  the  Royal  Labor  Conunission  that  member- 
ship in  the  union  by  his  men  "  was  being  winked  at 
as  long  as  the  members  kept  quiet."  Mr.  Livesey  is 
also  the  manager  of  the  Crystal  Palace  Gas  Com- 
pany, which  is  under  a  sliding  scale  for  dividends, 
prices  and  wages.  "  Almost  the  only  difference  be- 
tween this  plan  and  that  of  the  South  Metropohtan 
Company  is  that  no  trades-union  is  in  any  way  pro- 
hibited by  it."  Mr.  Livesey's  opposition  to  the  unions, 
which  is  the  ground  of  considerable  distrust  of  his 
plan  on  the  part  of  many,  thus  seems  to  be  much  less 
pronounced  than  has  been  imagined. 

In  1889  and  1890  the  bonus  to  the  workmen  was 
6  per  cent. ;  then,  with  a  rise  in  coal,  the  bonus  fell 
to  3  per  cent. ;  then  it  rose  to  4  and  5  per  cent. ;  in 
1895  it  was  6  per  cent.,  and  in  1896  and  1897  it 
was  1^  per  cent.  An  annual  bonus  festival  is  held  in 
August.  The  company  began  a  system  in  1889  of 
buying  stock  to  be  sold  in  small  pieces  to  employees 
and  consumers ;  in  four  years  the  employees  had  in- 
vested over  ,£4,000  in  £5  shares,  which  the  company 
enabled  them  to  procure  at  less  than  the  market 
price  at  the  time  of  transfer,  as  the  stock  was  rising. 

In  1894  another  step  was  taken  toward  copartner- 
ship, as  Mr.  Livesey  believes  that  "while  simple 
profit  sharing  is  good  as  far  as  it  goes,  it  does  not  go 
very  far.  It  creates  an  interest  beyond  their  wages, 
in  the  workers  in  the  business  by  which  they  live,  and 
promotes  a  feeling  of  good-wiU  between  employers  and 
employed,  but  as  to  doing  the  latter  permanent  good  I 
am  doubtful,  unless  means  are  adopted  to  induce  them 


320  A   DIVIDEND   TO  LABOR 

to  save  their  annual  bonus."  Accordingly,  in  1894, 
the  directors  offered  to  increase  the  annual  bonus  fifty 
per  cent,  on  condition  that  one  half  of  it  should  be  in- 
vested in  ordinary  stock.  In  the  next  twelve  months 
eighty-five  per  cent,  of  the  men  accepted  the  offer,  and 
after  a  time  all  of  them.  The  investments  in  stock 
have  risen  from  X5,000  in  1894,  to  £80,000  in  1899, 
and  there  are  also  .£30,000  on  deposit. 

The  more  than  2,800  workmen  shareholders  (the 
other  stockholders  number  6,780),  may  be  sharply 
divided  into  two  classes.  The  men  who  never  have 
saved  anything  and  do  not  save  voluntarily,  number 
about  1,500,  —  55  per  cent,  of  the  whole  number. 
They  own  simply  the  compulsory  amount,  which  at  the 
close  of  1898  averaged  £6  of  stock,  valued  at  £8, 
—  a  total  of  £12,000.  The  other  1,300  men,— 
45  per  cent,  of  the  whole — are  the  thrifty  ones,  who 
have  made  voluntary  savings  in  addition  to  the  com- 
pulsory ;  their  average  holding  is  about  £50,  the  total 
being  £68,000.  If  one  excludes  the  salaried  officers 
from  the  calculation,  the  average  remains  substan- 
tially the  same. 

To  the  final  step  on  his  programme  —  the  work- 
men directors  —  Mr.  Livesey  found  it  very  difficult  to 
win  the  assent  of  the  board  of  directors,  and  at  last 
he  made  this  change  a  condition  of  his  remaining 
with  the  company.  An  act  of  Parliament  was  pro- 
cured to  the  effect  that  the  workingmen  must  hold 
£40,000  of  stock  before  three  wage-earning  work- 
men directors  could  be  chosen,  and  the  act,  as  later 
amended,  made  it  necessary  for  the  workman  director 
to  have  been  seven  years  in  service,  and  to  be  the 
holder   of   £100  of  stock.     In  1898   the  necessary 


FIVE  CASES  OF  PROFIT  SHARING        321 

amount  of  stock  had  been  acquired,  and  there  were 
forty-eight  wage-earning  employees  qualified.  Out  of 
the  six  "  stations  "  of  the  company,  one  had  no  man 
qualified ;  at  another  only  one  of  the  two  qualified  would 
stand  as  a  candidate ;  at  another  only  one  of  six ;  at 
another  none  out  of  the  seven  qualified ;  at  another 
only  one  out  of  fourteen.  At  Old  Kent  Road,  the 
principal  station,  there  were  nine  candidates  out  of 
nineteen  qualified,  and  a  preliminary  election  was 
necessary  to  select  one.  One  of  the  best  men  was 
chosen.  There  were  thus  four  candidates  at  the  final 
voting,  on  October  28,  1898,  for  the  two  places  to  be 
filled ;  the  employees  on  the  stafP  had  decided  to  take 
no  action  toward  electing  the  director  to  whom  they 
were  entitled  of  the  three.  Each  voter  had  one  vote 
for  every  <£10  of  stock  up  to  £100 ;  then  one  vote 
for  every  £2b  up  toX300;  after  that  one  vote  for 
every  £50  up  to  £1,000,  and  no  more.  Two  excel- 
lent men  were  elected ;  ^  they  took  their  seats  Novem- 
ber 2,  1898,  and  they  have  since  shown  no  sign  of  an 
inclination  to  take  a  narrow  view  of  their  duties,  but 
have  always  had  the  interests  of  the  whole  company 
before  them. 

"  The  workman  director  is  an  experiment,  limited 
at  first  to  three  years,"  but  the  nine  years'  experience 
of  the  company  with  the  profit-sharing  committee, 
half  of  whom  have  been  the  eighteen  workmen  elected 
by  the  profit-sharing  employees,  is  very  encouraging 
for  success.  This  committee  is  large,  one  third  retire 
every  year,  and  other  questions  than  profit  sharing 
relating  to  the  workmen  are  referred  to  it ;  but  "  it 

^  Workers  were  heard  to  say  before  the  election  that  they  did  not 
want  on  the  Board  as  their  representatives  "  any  chattering  workman.'' 


322  A   DIVIDEND   TO  LABOR 

has  worked  most  satisfactorily,  without  a  hitch  of  any 
kind."  Individual  grievances  are  usually  settled  be- 
fore reaching  the  fidl  committee,  which  deals  with 
general  questions  mainly,  such  as  affect  the  sick 
and  burial,  superannuation,  and  widows'  and  orphans' 
funds,  and  concessions  to  all  the  workmen,  such  as 
the  supply  of  gas  at  cost  (which  was  granted)  and 
holidays.  "  I  have  presided  at  every  meeting,"  said 
Mr.  Livesey  three  years  ago,  "  and  we  have  never  had 
a  division  of  opinion ;  certainly,  if  I  found  the  men 
anything  like  unanimously  held  a  paiiicular  view,  it 
would  be  accepted,  unless  it  was  quite  impossible. 
.  .  .  Profit  sharing  has  proved  most  satisfactory. 
The  men,  generally,  do  their  work  cheerfully,  and  in 
a  happy,  contented  spirit,  which  alone  is  worth,  in  im- 
proved working,  all  the  profit  sharing  costs  the  com- 
pany. Individually,  many  of  the  workmen  show  a 
decided  interest  in  the  company  by  suggesting  various 
economies  and  improvements,  and  the  number  who 
take  this  interest  is  growing.  .  .  .  The  coal  men  who 
fire  the  coals  are  more  careful  with  their  tools.  .  .  . 
In  the  retort  house,  if  they  see  the  coals  spilt,  they 
say,  '  That  will  not  do ;  that  will  go  against  our 
profit  sharing.^  .  .  .  Unquestionably  the  system  of 
which  the  joint  committee  forms  an  essential  part  has 
promoted  harmony  and  good  feeling  between  employ- 
ers and  employed.  There  has  not  been  a  single  dis- 
pute of  any  kind  since  the  system  was  inaugurated  in 
1889,  except  the  great  strike  of  1889.  .  .  .  As  to 
the  idea  of  a  strike,  whenever  the  word  has  been 
named,  every  man  says, '  We  shall  never  have  another ; ' 
they  simply  laugh  at  the  idea.  I  state  unhesitat- 
ingly that  the  company  is  recouped  the  whole  of  the 


Fi,  7  CASES  O.       iiw^  323 

amounts  —  some  £40,000 — paid  on  bonas  since  the 
system  was  started.  Of  course,  I  do  not  say  that  all 
the  men  are  influenced  as  above  stated  in  the  direc- 
tion of  studying  the  company's  interest ;  but  many 
are,  the  numbers  are  growing,  and  the  system  is  prov- 
ing an  effective  means  of  educating  the  workman  in 
industrial  economics."  It  is  not  strange  that  the 
Duke  of  Devonshire,  addressing  the  employees,  at  the 
fifth  annual  profit-sharing  festival,  with  their  wives 
and  children,  commended  this  instance  of  "  the  com- 
bination of  capital  and  labor,"  and  hoped  that  others 
would  imitate  the  example  set  them  by  the  South 
Metropolitan  Gas  Company. 

Mr.  Livesey  is  firmly  of  the  faith  that  copartnership 
is  "  the  direction  which  promises  the  most  satisfactory 
results.  I  believe  that  what  is  wanted  to  secure  in- 
dustrial peace  is  partnership  —  the  more  complete  the 
better  —  partnership  in  profits,  in  capital,  in  respon- 
sibility. It  will  take  time  and  patience  and  earnest 
work  to  bring  it  about,  but  the  result  will  be  worth 
all  that  it  costs."  ^ 

THE  NELSON  MANUFACTURING   COMPANY  AND 
LECLAIRE,    ILLINOIS. 

The  profit-sharing  enterprise  begun  by  Mr.  N.  O. 
Nelson,  of  St.  Louis,  Mo.,  in  1886,  was  fully  de- 
scribed in  my  "Profit  Sharing"  (1889,  pp.  305-308). 
Since  1889  the  company  has  developed  the  scheme 
considerably  in  the  direction  of  productive  coopera- 

^  Some  of  the  quotations  in  this  account  of  the  South  Metropolitan 
Gas  Company  are  from  a  recent  communication  from  Mr.  Livesey ; 
others  are  from  the  tenth  chapter  of  Mr.  Henry  D.  Lloyd's  valuable 
work,  Labor  Copartnership,  from  which  I  have  taken  numerous  par- 
ticulars. 


324  A  DIVIDEND  TO  LABOR 

tion,  and  the  success  which  has  attended  its  efforts 
places  its  system  at  the  head  of  American  instances  of 
participation,  and  entitles  Mr.  Nelson  to  mention  in 
connection  with  the  honored  names  of  Leclaire,  La- 
roche-Joubert,  Boucicaut  and  Godin.  He  is  a  strong 
beUever  in  a  natural  and  inevitable  evolution  of  profit 
sharing  into  cooperation  in  its  fullest  sense.  A  de- 
scription, in  some  detail,  of  the  manufacturing  village 
which  the  Nelson  Company  is  building  up,  as  a  suburb 
of  Edwardsville,  111.,  eighteen  miles  northeast  of  St. 
Louis,  will,  therefore,  have  interest  for  the  students  of 
participation  and  cooperation  alike. 

Edwardsville  is  a  "  city  "  of  some  five  thousand  souls, 
which  one  reaches  from  Chicago  after  a  ride  of  seven 
hours  through  the  wonderful  maize  region  of  the  fertile 
State  of  Illinois.  It  has  ample  railroad  accommoda- 
tions from  four  lines  for  its  coal  mines,  brick  yards 
and  manufactories.  Adjoining  one  of  its  stations,  the 
Nelson  Company  acquired,  in  1890,  one  hundred  and 
twenty-five  acres  of  farm  land  for  the  new  industrial 
village,  to  which  it  gave  the  name  of  the  "  father  of 
profit  sharing."  It  now  has  in  operation  six  factories 
of  brick,  one  story  only  in  height,  and  ranging  in  size 
from  50  X  60  feet  to  80  x  160  feet.  The  principles 
of  safe  construction  against  fire  laid  down  by  Mr. 
Edward  Atkinson,  the  noted  publicist,  have  been  fully 
complied  with.  Well  ventilated,  spacious,  communi- 
cating easily  with  each  other,  all  on  one  floor  level, 
heated  by  steam,  Hghted  by  electricity,  and  protected 
by  automatic  sprinklers,  these  plain,  unpretentious 
buildings  furnish  the  maximum  of  healthfulness,  safety 
and  convenience.  The  plant  comprises  a  boiler-house, 
a  cabinet  factory,  a  planing  mill,  a  brass  factory, 


FIVE  CASES  OF  PROFIT  SHARING        325 

marble  works,  and  bicycle  and  machinery  shops.  Here 
the  company  manufactures  the  entire  equipment  of  a 
modern  bathroom  in  marble  and  metal,  and  other 
plumbers'  supplies,  wood  mantels,  various  brass,  iron 
and  lead  fixtures  and  piping,  the  marble  apparatus 
for  haUs,  vestibules  and  floors  in  houses,  and,  most 
recently,  a  high  grade  bicycle,  the  "  Leclaire."  The 
industries  still  carried  on  in  St.  Louis  will  gradually 
be  transferred  to  the  new  site,  while  the  commercial 
and  strictly  jobbing  departments  will  remain  in  town. 
The  working  force  at  Leclaire  and  in  St.  Louis 
consists  of  some  four  himdred  men,  women  and  boys, 
—  manual  workers,  clerks,  typewriters,  foremen  and 
managers.  In  both  places  the  intelligence,  alertness, 
competence  and  contentedness  of  the  employees  are 
conspicuous.  All^QayJbe_partner8  in^  the  profits  of 
the  enterprise  in  which  they  are  common  workerSj^ 
The  rnajerityTjf'TEeTour  hundred  are  also  stockhold- 
ers, ahd]3raw  a  dmdend  upon  th^jr  shares  as  well  as 
upon  their  year's  wages.  The  usual  bonus  ha^been 
paid  entirely  lii  iLOCk~glnce  1890;  whenever  an  em- 
ployee  leaves  the  company,  his  stock  is  redeemed  at 
par.  Profit  sharing  has  been  in  force  since  1886,  and 
the  ten  years  following  made  this  showing:  In  1886 
the  bonus  to  labor  was  5_per  cent,  on  wages;  in  1887, 
10  per  cent. ;  in  1888,  8  pej?  cent.;  in  1889,J.0_per 
cent. ;  in  1890,  10^  per  cent. ;  in  1891,  7_ger  cent. ; 
in  1892,  4  per  cent. ;  in-  1893,^02^^13?^^^'  ^ 
per  cent. ;  in  1895,  5  per  cent. ;  in  1896,  nothing.^ 

^  One  of  the  employees,  to  be  chosen  by  the  men,  conld  examine 
the  closing  of  the  books  of  the  company  at  the  end  of  the  year ;  as 
the  men  never  cared  to  avail  themselves  of  this  privilege,  having 
entire  confidence  in  the  accounting  employees,  the  provision  was 
dropped  after  the  first  seven  years. 


326  A  DIVIDEND   TO  LABOR 

The  average  annual  dividend  of  the  employee  was 
thus  6.4  per  cent,  for  the  first  ten  years.  Since  1892 
double  the  rate  has  been  given  to  wages  that  capital 
receives  (above  6  per  cent,  interest)  from  the  net 
profits.  Ten  per  cent,  of  these  profits  is  set  aside  for 
a  reserve  fund. 

The  company  pays  out  the  sima  needed  in  cases  of 
sickness  and  disability,  as  each  case  arises,  and  charges 
the  amount  to  running  expenses  ;  the  allowance  varies 
^om  f 5  to  $1  a  week  during  disability.  For  funeral 
expenses  $40  are  allowed,  if  needed.  The  family  of 
a  deceased  employee  receives  aid  to  an  extent  not 
exceeding  two  thirds  of  his  wages,  until  self-support  is 
feasible.  Up  to  July,  1896,  some  $10,000  had  been 
paid  out  for  these  various  provident  purposes. 

About  one  hundred  and  ten  acres  of  the  company's 
land  are  separated  by  a  high  Osage  orange  hedge  from 
the  fifteen  acres  occupied  by  the  factories.  Entering 
this  rural  reservation,  we  notice  at  once  the  excellent 
cinder-roads,  the  large  cultivated  plot  on  the  left,  the 
schoolhouse  in  front,  and,  beyond,  the  neat  and  com- 
modious houses  (some  thirty  in  number)  of  the  work- 
men. The  company  does  not  wish  to  be  a  permanent 
landlord,  althovigh  it  owns  and  rents  some  houses  out 
of  the  thirty  now  built.  It  will  agree  with  the  worker 
on  a  plan  of  the  desired  house,  and  then  erect  it  for 
him,  at  a  price  equal  to  the  usual  cost  of  labor  and 
material,  on  easy  terms  of  payment:  the  company 
now  prefers  to  have  the  employees  build  with  the  help 
of  building  associations.  The  price  for  the  land  is 
four  dollars  per  front  foot,  including  improvements. 
In  return  for  this  payment,  the  company  bears  the 
entire  expense  of  supplying  each  house  with  water, 


FIVE  CASES  OF  PROFIT  SHARING        327 

grading  and  paving  the  street,  building  and  maintain- 
ing the  sidewalk  and  fencing,  and  setting  out  trees. 
Electric  light  is  furnished  to  each  householder  for 
twenty-five  cents  per  month  for  each  light.  The  care 
and  hghting  of  the  streets  are  an  affair  of  the  com- 
pany. The  purchaser  of  a  house  receives  a  deed  and 
gives  a  mortgage,  on  which  he  pays  from  twelve  to 
twenty  dollars  a  month,  until  its  full  discharge. 
There  has  been  no  instance  of  failure  to  pay  these 
installments.!  The  company  employs  a  gardener  (one 
of  the  workmen)  who  cares  for  the  streets  and  the 
public  grounds ;  from  the  hothouse  under  his  manage- 
ment some  thousands  of  plants  are  procured  each 
year  for  public  and  private  uses.  The  grounds  about 
the  schoolhouse  and  the  dwellings  attest  a  general  love 
of  the  beautiful ;  flower-beds,  trees  and  ornamental 
shrubs  abound.^ 

A  fundamental  idea  of  the  Nelson  Company  is  the 
union  of  industrial  training  with  education  from 
books.  It  supports  a  school  system  under  the  charge 
of  Mr.  E.  N.  Plank  as  principal,  with  two  women 
teachers  in  the  kindergarten  and  primary  departments. 
The  cultivation  of  the  small-fruits  and  vegetable  field 
gives  the  children  a  knowledge  of  agriculture  and  hor- 
ticulture.    At  the  age  of  twelve  each  boy  pupil  in  the 

^  If  an  employee  wishes  to  leave  Leclaire,  or  to  dispose  of  his  home 
for  any  other  reason,  the  company  takes  the  house  and  pays  hack  all 
that  has  been  advanced  on  it,  charging  rent  for  the  time  the  dwelling 
was  occupied.  A  club-house  accommodates  those  unmarried  men 
employed  at  Leclaire  who  are  not  otherwise  provided  for. 

*  The  plan  of  the  founders  of  Leclaire  is  to  unite  the  advantages  of 
a  large  manufacturing  plant  and  city  conveniences  with  the  freedom 
and  economy  of  country  life.  All  who  wish  can  easily  raise  their  own 
vegetables  and  keep  their  own  cow  and  poultry:  all  can  eat  their 
three  meals  at  home. 


328  A  DIVIDEND  TO  LABOR 

school  works  one  hour  a  day  in  the  factories  or  on  the 
farm.  As  his  years  increase,  his  work  hours  also  in- 
crease, until  at  graduation,  when  he  is  about  eighteen, 
he  will  be  working  half  time.  He  will  then  have 
acquired  a  trade,  and  a  full  job  at  fidl  pay  will  await 
him.  He  would,  in  the  mean  time,  have  received  pay 
for  the  actual  value  of  his  work.  The  schoolliouse 
contains  an  excellent  free  library  of  one  thousand 
books,  one  hundred  of  which  are  usually  out  at  a 
time.^  Lectures  are  given  two  or  three  times  a  month 
in  the  winter  season,  and  these  are  varied  by  con- 
certs and  other  entertainments.  That  musical  talent 
abounds  in  Leclaire  is  shown  by  the  fact  that  an 
admirable  brass  band  of  thirty  regular  members  has 
been  formed  from  the  employees.  The  leader  is  em- 
ployed in  the  varnishing  shop.  The  company  has 
given  the  band  a  fine  uniform,  and  it  will  advance 
money  for  an  instrument,  in  case  of  need,  to  be  repaid 
by  the  player. 

The  cooperative  store,  conducted  entirely  by  the 
members  (fifty  in  number  in  June,  1896),  was  located 
in  the  lower  story  of  a  building  (the  band  having 
their  quarters  above)  provided  by  the  company.  The 
capital  was  in  fifty-dollar  shares,  only  one  share  to 
each  member  being  allowed,  with  the  one  vote  attached 
to  it :  the  member  could  acquire  his  share  by  weekly 
installments  of  fifty  cents  if  he  wished.  The  sound 
business  principles  of  the  best  cooperative  stores  of 

1  In  the  schoolhoTise  a  fine  bust  of  Edme-Jean  Leclaire  is  conspicu- 
ous ;  it  was  presented  to  the  new  village  by  the  Maison  Leclaire  of 
Paris,  after  the  close  of  the  Exposition  at  Chicago  in  1893.  On  a 
stand  in  another  room  is  framed  the  address  of  congratulation  sent  by 
the  workmen  of  the  Parisian  house  to  their  American  compeers,  and 
signed  by  nine  hundred  of  them. 


FIVE  CASES  OF  PROFIT  SHARING        329 

England  governed  this  Leclaire  establishment.  All 
purchases  were  for  cash  only ;  the  usual  retail  price 
was  charged,  and  the  net  profit  was  returned  to  the 
buyer  as  a  percentage  on  his  purchases.  For  some 
years  the  store  paid  six  per  cent,  interest  on  its  cap- 
ital, and  an  average  dividend  of  fifteen  per  cent,  on 
purchases.  The  mistake  was  afterwards  made  of 
enlarging  unduly  the  scope  of  the  business.  This 
plan  resulting  in  loss,  the  members  wisely  returned  to 
the  former  limits  and  regularly  received  ten  per  cent. 
on  purchases.  The  store,  Mr.  Nelson  writes  me,  was 
afterwards  discontinued,  "  mainly  because  we  were  so 
close  to  EdwardsviUe,  which  was  full  of  stores,  and 
there  were  not  quite  enough  of  us  to  make  it  interest- 
ing." The  adjoining  coal  mine  sells  bituminous  coal 
to  the  company  for  one  dollar  a  car-load  for  slack 
coal,  its  almost  exclusive  fuel ;  employees  pay  $1.25 
a  ton. 

While  the  Nelson  Company  exhibits  in  many  direc- 
tions the  most  friendly  spirit  toward  its  employees,  it 
carefully  avoids  paternalism  and  the  consequent  weak- 
ening of  the  workman's  independence  and  self-respect. 
It  makes  no  conditions  as  to  length  of  service  qualify- 
ing a  man  to  become  a  sharer  in  profits ;  he  can  be- 
long to  a  trade-union  or  not,  at  his  pleasure  ;  he  can 
leave  the  concern  when  he  likes,  without  loss.  _The_ 
onlj  condition  imposed  upon  the  employee_who  shareia 
in  the  profits  is  that,  if  he,ift  worki^ig  full  tinig^jrii^n 
pay,  he  shall  save  ten  per  cent,  of  his  wap^es  nx\^  in- 
vest  the  sum  in  the  stock  of  the  company 
live  jp-Leolaiiu,  or  not,  as  he  wills :  we  have  noted 
the  freedom  he  enjoys  if  he  chooses  to  live  there,  a 
freedom  in-flfe^ng  contrast  with  the  state  of  subordi- 


330  A  DIVIDEND  TO  LABOR 

nation  of  a  dweller  in  Pullman.  There  is  no  liquor 
saloon  in  Leclaire,  though  one  or  two  are,  unfortu- 
nately, too  near  at  hand  over  the  Edwardsville  line ; 
and  thus  far  there  has  been  no  need  of  a  police  force. 
The  village  is  not  subject  to  the  authorities  of 
Edwardsville,  but  to  those  of  the  larger  "  township." 
The  library  and  the  school  are  open  to  the  residents 
of  Edwardsville,  and  outsiders  are  welcomed  as  house- 
uUders. 

The  good  feeling  and  good  sense  prevailing  among 
the  employees  of  the  Nelson  CompanyTafter  years  of 
profit  sharing  had  done  their  natural  work  of  edu- 
cation,  were  forcibly  shown  in  the  hard  times  of  1893. 
In  July  of  that  year  the  management  were  obliged  to 
reduce  wages  one  fourth.  Reductions  of  the  work- 
man's' income  are  common  in  times  of  conunercial 
distress.  True  to  its  principles,  the  JN  elson  Com- 
pany took  the  much  more  unusual  course^  of^  reducing 
salaries  and  interest  in  the  same  proportion  as  wages. 
The  one  fourth  thus  deducted  from  wages,  salaries 
and  interest  was  to_be^nade_good^>utjof  subsequent 
profits  before  any  bonus  should  be  paid.  TEe  em- 
ployees ofThe  firm,  seeing  the  obvious  fairness  and 
the  plain  necessity  of  this  arrangement,  ratified.it 
cordially.  Such  was  the  good  fortune  of  the  company 
that  it  was  soon  able,  only  three  months  later,  to  re- 
simie  fidl  pay,  and  at  the  end  of  the  year  the  ammmt 
deducted  for  the  third  quarter  was  made  up  to  all  the 
parties  concerned ;  there  was,  of  course,  no  bonus 
to  divide.  This  event  may  well  be  reckoned,  as  Mr. 
Nelson  says,  "another  victory  for  profit  sharing." 

Mr.  Nelson,  who  now  resides  at  Leclau'e,  has  taken 
a  decisive  step  in  that  advance  from  profit  sharing  to 


FIVE  CASES  OF  PROFIT  SHARING        331 

cooperative  production  which  he  believes  logical  and 
desirable.  One  of  the  factories  at  Leclaire,  the 
cabinet-making  shop,  is  now  on  the  way  to  become  the 
sole  property  of  the  workers  in  it.  On  December  1, 
1895,  the  company  proposed  that  the  employees  in  this 
department,  "the  oldest  at  Leclaire,  should  become 
the  owners  of  the  plant  and  working  capital  at  its  first 
cost  by  contributing,  at  the  start,  one  fourth  of  their 
wages,  when  working  full  time,  the  proportion  to 
decrease  at  double  the  rate  at  which  they  should  de- 
crease the  purchase  price ;  that  they  should  pay  the 
company  six  per  cent,  interest  on  the  investment,  and 
have  all  the  profits ;  that  they  should  organize  as  a 
cooperative  concern  as  soon  as  one  tenth  of  the  pur- 
chase price  was  paid  off ;  that  the  company  should 
have  control,  but  without  any  charge  for  business 
management,  until  they  had  paid  off  one  half.  The 
company  estimate  that,  at  the  end  of  the  first  year, 
there  would  be  a  reduction  from  wages  of  about  one 
eighth  and  at  the  end  of  the  second  year  of  nothing  ; 
and  that  the  whole  sum  would  be  paid  in  about  six  or 
eight  years."  Some  peculiar  circumstances  led  to  a 
rejection  by  the  men  of  this  generous  proposition, 
and  it  was  withdrawn.  The  objections  made  were  to 
the  immediate  loss  in  wages  and  to  the  idea  of  "  going 
alone."  What  the  newspapers  inaccurately  termed  a 
"  strike  "  occurred.  "  A  good  part  of  the  force  went 
right  along  and  never  stopped  ;  but  there  was  enough 
mischief  in  some  [new-comers,  mostly]  to  create  actual 
trouble,  which  it  was  not  well  to  risk.  The  proposal 
was  immediately  called  off,  and  the  work  went  on  in 
the  usual  way."  Not  long  afterwards,  the  men  volun- 
tarily requested  the  company  to  renew  the  proposal, 


332  A  DIVIDEND  TO  LABOR 

somewhat  modified ;  it  did  so,  and  the  proposal  was 
accepted  by  the  workers  in  the  cabinet  factory,  which 
is  now  on  the  highroad  to  cooperative  production,  pure 
and  simple.!  It  is  the  intention  of  the  company  to 
make  a  similar  proposal  to  the  men  in  the  other 
factories,  in  turn,  whenever  they  manifest  a  desire  to 
fall  in  with  it,  without  waiting  for  a  number  of  years 
to  show  the  results  reached  by  the  cabinet  workers. 
The  company  considers  the  risks  of  failure  to  be  very 
small  after  the  ten  years'  experience  in  profit  sharing 
which  this  factory  had ;  this  has  given  the  men  a 
larger  self-reliance  and  a  better  knowledge  of  business 
than  are  possessed  by  the  ordinary  workman. 

As  the  first  instance  in  America  of  a  profit  sharing 
firm  transforming  itself  gradually  into  a  cooperative 
productive  establishment,  the  Leclaire  works  have  a 
new  claim  upon  the  interest  and  sympathy  of  all  who 
have  observed  the  brilliant  record  of  the  Nelson  Com- 
pany for  the  last  dozen  years.'^  If  successful  in  the 
new  venture,  as  they  seem  likely  to  be,  they  will,  it  is 
to  be  hoped,  find  numerous  imitators  among  large 

^  The  spirit  of  these  workmen  is  shown  by  the  fact  that,  on  a  visit 
to  Leclaire,  in  1896,  the  writer  found  a  force  employed  on  night 
work,  in  addition  to  the  full  day  force,  a  step  taken  purely  of  their 
own  volition,  as  they  now  control  all  such  matters.  After  trying  a 
day  of  nine  hours  for  several  years,  the  whole  Nelson  force  went  hack 
voluntarily  to  ten  hours.  The  company  believes  that  "  the  hourly 
return  for  nine  hours  is  greater  than  the  hourly  return  for  ten,  but 
that  in  the  aggregate  more  work  will  be  done  in  ten  hours  than  in 
nine."  It  is  the  intention  to  go  back  to  nine  hours  and  to  reduce 
these  to  eight,  in  time. 

2  For  further  particulars  the  reader  may  consult  Employer  and 
Employed  for  October,  189.3  ("A  Visit  to  Leclaire,"  by  the  noted 
philanthropist,  Edward  Everett  Hale),  and  January,  1894  ("  Through 
Profit  Sharing  to  Cooperation,"  by  Mr.  Nelson) ;  and  The  Forum 
for  March,  1895  ("  Two  Examples  of  Successful  Profit  Sharing,"  by 
Professor  F.  W.  Blackmar). 


FIVE  CASES  OF  PROFIT  SHARING        333 

manufacturers  who  desire,  naturally  enough,  to  let 
others  do  the  difficult  work  of  experimenting,  but  will 
be  ready  to  follow  after  an  assured  and  confirmed 
success. 


CHAPTER  X 

PEOFIT    SHARING   TO-DAY 

In  the  following  pages  I  seek  to  present  briefly 
some  of  the  more  important  particulars  in  the  history 
of  the  profit-sharing  movement  since  1889.1  ^i^q 
argument  for  such  a  modification  of  the  common 
wages  system  I  have  presented  in  full  before  and  need 
not  repeat.  The  matter  that  here  concerns  us  is  the 
record  of  the  last  ten  years,  and  its  bearing  upon  the 
movement  and  the  claims  of  its  advocates.  This 
period  has  been,  for  the  most  part,  and  especially  in 
the  United  States  of  America,  marked  by  a  long  busi- 
ness depression. 

For  the  larger  part  of  the  years  1889-1899,  par- 
ticularly from  1893  to  1897,  the  difficulty  has  been, 
as  many  have  said,  not  how  to  share  profits,  but  how 
to  avoid  serious  losses.  The  question  of  dividing  the 
profits  could  not,  therefore,  be  voted  "  urgent,"  and  it 
it  has  seemed,  in  the  eyes  of  men  of  business,  to  lack 
actuality.  The  advocate  of  the  system,  indeed,  might 
pleasantly  contrast  the  demand  for  propaganda  laid 
upon  him  by  it  in  good  times  with  the  quiescence 
that  must  then  fall,  in  considerable  degree  at  least, 
upon  other  reformers,  who  perchance  maintain  that 

^  I  have  eiubodied  the  substance  of  the  information  given  in  1893^,^ 
in  pp.  300-307  of  Socialism  and  the  American  Spirit,  so  as  to  make  the 
present  chapter  complete  in  itself,  as  a  supplement  to  the  extended 
treatment  in   Profit  Sharing.     The  chief   literature  of   the  subject, 
Bince  1889,  will  be  found  in  the  bibliography. 


\ 


PROFIT  SHARING  TO-DAY  335 

society  is  going  to  ruin  because  of  neglecting  their 
favoxite  ^  '\naceas.  In  hard  tim^s  they  flomish,  so  to 
^p-  k,   "      V'le  general  n  •  """'^  Tjrer'*^  their 

social  doctrines,  however  wi.  liuwise,  with  fresh 

zeal  and  courage.  But  with  the  c_.ampion  of  profit 
sharing  it  is  not  so.  In  times  when  no.  profits  are 
made  he  feels  no  call  to  belabor  employers  because 
they  do  not  divide  their  gains  with  the  employees. 
He  does  not  care  to  sow  his  seed  on  the  rock,  as  the 
hymn-writer  advises,  quite  contrary  to  the  implication 
of  the  parable  of  Jesus !  His  counsel  revives,  how- 
ever, in  the  day  when  prosperity  returns,  as  it  is  sure 
to  do  after  the  longest  depression. 

It  is  not  at  all  strange,  on  the  contrary  it  is  the 
thing  naturally  to  be  expected,  if  numerous  ventures 
in  profit  sharing,  just  begun  or  not  well  established, 
should  come  to  an  early  end  in  the  days  of  panic  or  the  ^___- 
years  of  slow  and  almost  imperceptible  recovery  from 
it.     Profit  sharing,  evidently,  is  no  guarantee  against   -^ 
commercial   crises   and    hard   times,    however   much 
moral  aid  may  be  drawn  from  it  at  such  times  in  fac- 
tories where  it  has  had  a  long  and  successful  experi- 
ence.    We   should   be  prepared   for   a  considerable 
falling  off  in  the  number  of  American  cases  of  profit 
sharing,    at   least,    a   decline   which   the  subsequent    /^ 
prosperity  of  the  last  two  or  three  years  has  not  yet 
offset. 

In  France  there  has  been  a  very  gradual  increase 
in  the  number  of  firms  giving  a  share  of  the  profits  to 
the  workman  since  1889.  The  latest  figures  give  the 
nimiber  of  such  cases  as  109.  Probably  this  should 
be  somewhat  diminished  by  the  omission  of  a  number 
of  cases  in  which  the  system  has  lapsed,  but  nothing 


336  A  DIVIDEND  TO  LABOR 

has  been  said  about  the  change  in  print.^  On  the 
other  hand,  not  a  few  of  the  Societes  Cooperatives  de 
Consommation  are  quite  faithful  to  the  cooperative 
principle  in  that  they  give  a  share  in  the  profits  to 
their  workers  as  well  as  to  the  shareholder  and  the 
consumer.  The  four  most  noted  profit-sharing  houses 
in  France  of  long  date  —  the  Maison  Leclaire,  the 
Laroche-Joubert  paper  works  at  Angouleme,  the 
Godin  foundries  at  Guise,  and  the  Bon  Marche  at 
Paris  —  are,  in  different  degrees,  fitly  styled  cooper- 
ative establishments.  As  they  reached  this  position 
by  a  different  course  from  that  usually  followed  by 
cooperative  productive  houses,  they  apply  the  coopera- 
tive principle  under  a  somewhat  different  form.  The 
features  of  difference  —  for  instance,  the  larger  mea- 
sure of  control  given  to  the  managing  partners, 
(who  have  been  selected,  in  true  cooperative  fashion, 
by  the  body  of  employes^  —  are  such  as  to  give  these 
French  houses  a  coherence  and  efficiency  not  often 
seen  in  houses  that  profess  the  cooperative  faith.  A 
strong  argument  can  be  made  for  profit  sharing  as  a 
training  school  for  complete  cooperative  production ; 
the  four  establishments  just  named  have  shown  how 
desirable  and  how  feasible  it  is  as  a  transition  method.^ 
The  Maison  Leclaire  at  Paris  continues  on  its  way 
with  unabated  success  ;  under  the  firm-name,  Redouly 
et  Cie,  the  partners  are  M.  Redouly  (since  1872)  and 
MM.  Valme  and  Beudin  (since  the  death  of  M.  Mar- 
quot  in  1890).     With  the  choice  of  these  two  later 

^  See  the  note  on  the  French  list  in  Appendix  II. 

^  See  on  this  suhject  the  instructive  work  by  Ug'o  Rahheno,  Le 
Societh  Cooperative  di  Produzione.  Parte  III.,  "  La  Partecipazione  al 
Profitto  come  Mezzo  di  Transizione,"  pp.  387-419.    Milano,  1889. 


PROFIT  SHARING  TO-DAY  337 

partners  tlie  capital  of  the  house  was  doubled ;  it  is 
now  800,000  fr.  A  street  in  Paris  has  been  named 
after  M.  Leelaire,  and  his  statue  stands  in  the  Square 
des  Epinettes  near  by. 

The  president  of  the  board  of  managers  of  the 
Papeterie  Cooperative  of  Angouleme  is  now  M. 
Edgard  Laroche-Joubert,  the  son  of  the  founder. 
Out  of  a  capital  of  4,570,000  fr.  the  workmen  and 
employes  in  service  in  1896  held  938,000  fr.,  while 
those  passed  out  of  service  held  896,000  fr.,  a  total  of 
1,834,000  fr. ;  in  the  same  year  633  depositors  in  the 
savings  fund  had  228,691  fr.  to  their  credit. 

The  business  of  the  Godin  foundries,  now  Colin 
et  Cie,  at  Guise,  had  so  increased  that  there  were, 
in  1893-94,  1,014  participants  (of  the  three  grades) 
against  793  in  1887.  The  business  of  the  year  was 
4,014,000  fr.,  and  the  net  profit  262,851  fr.,  about 
three  fourths  of  which  went  to  the  workmen.  The 
plant  was  valued  at  11,235,663  fr. 

The  firm  name  of  the  Bon  Marche  is  now  Morin, 
Pillot,  Bicois  et  Cie.  The  400  shares  (divisible  into 
eight  parts)  of  50,000  francs  each  (less  than  one  sixth 
of  their  market  value),  were  held  in  1896  by  some 
600  employees,  past  and  present,  from  the  shop-boys  up 
to  the  managing  partners.  The  numerous  institutions 
for  the  care  and  rehef  of  the  army  of  employees  are 
fitly  styled  "  models  "  by  a  recent  writer ;  he  applies 
the  same  adjective  to  the  whole  establishment.^ 

1  Le  Micanisme  de  la  Vie  Moderne,  par  le  Vicomte  G.  D'Avenel, 
eh.  i.  §§  2  and  8.  Paris,  1896.  "  After  the  example  of  the  Bou 
March^,"  he  says  elsewhere,  "  M.  Jaluzot  has  conceived  the  praise- 
worthy idea  of  transferring  to  his  employees,  gradually,  the  owner- 
ship of  Le  Printemps  [another  department  store]  ;  hut,  as  the  chances 
of  surplus  value  appear  less  than  in  the  establishment  on  the  Rue  da 


338  A  DIVIDEND  TO  LABOR 

The  French  Participation  Society  has  suffered 
heavy  losses  in  recent  years  in  the  death  of  M.  Albans 
Chaix  and  M.  le  Comte  de  Chambrun,i  and,  most  of 
all,  in  the  decease  of  M.  Charles  Eobert,  its  accom- 
plished and  indefatigable  president,  on  July  24, 1899. 
M.  Robert  was  the  most  distinguished  advocate  of 
profit  sharing  in  France ;  he  devoted  great  abilities 
and  a  great  character  to  the  cause  of  cooperation  in 
all  its  forms. 

On  the  Continent  outside  of  France  there  are  still 
comparatively  few  cases  of  profit  sharing  in  any  one 
country ;  they  are  proportionately  more  numerous  in 
Switzerland  than  elsewhere.  This  little  country  pre- 
sents fourteen  instances  ;  Germany,  forty-seven ;  Aus- 
tria-Hungary, five  ;  Belgium,  six ;  Holland,  seven ; 
Italy,  eight ;  and  there  are  scattering  examples  in 
Spain,  Portugal,  Scandinavia  and  Russia — nine  in 
aU.2  The  yearly  contribution  of  the  mine  owners  of 
Belgium,  which  has  been  described  in  chapter  vi.,  is, 
like  the  practice  of  French  collieries,  a  very  considera- 
ble instance  of  indirect  profit  sharing  on  a  large  scale. 
All  over  those  parts  of  the  Continent,  in  fact,  where 

Bac,  lie  has  had  to  require  each  member  of  his  force  to  purchase  a 
certain  numiber  of  shares  according  to  his  grade,  from  twenty-five  for 
the  chiefs  of  departments  to  one  for  simple  clerks.  These  figures 
being  only  the  obligatory  minima,  there  are  now  seventy-five  em- 
ployees who  hold  more  than  ten  shares,  and  take  part  in  the  general 
assembly  of  the  stockholders  "  {ibid.  p.  38). 

^  The  Comte  de  Chambrun  instituted  a  prize  competition  in  1895 
for  the  best  essay  on  profit  sharing ;  this  resulted  in  the  publication 
of  the  four  volumes  by  MM.  Waxweiler,  Vanlaer,  Bureau  and  Merlin, 
named  in  the  bibliography  in  Appendix  IV. 

2  M.  le  Comte  Auguste  Ciezskowski  of  Posen  practiced  a  scheme  of 
profit  sharing  in  agriculture  fifty-three  years  ago.  Lord  Wallscourt 
and  M.  J.  L.  Legrand  (Ban  de  la  Roche)  were  two  other  pioneers  of 
the  system.    See  the  note  at  the  end  of  Appendix  U. 


PROFIT  SHARING  TO-DAY  339 

patronal  institutions  abound,  the  general  principle  is 
recognized  by  many  employers  that  the  enjoyment  of 
a  portion  of  the  profits  properly  falls  to  the  work- 
people. The  form  which  the  distribution  takes  is,  as 
we  have  seen,  indirect  and  collective,  in  the  support  of 
institutions  for  the  whole  force  of  a  factory.  While 
the  convinced  advocate  of  profit  sharing  will  natu- 
rally welcome  an  increase  in  the  number  of  firms 
which  give  an  annual  bonus  directly  and  explicitly  to 
the  individual  worker,  he  will  recognize  that  this  is  a 
forward  step  which  many  will  hesitate  to  take  for 
various  reasons ;  and  that  the  main  matter  is  that 
welfare-institutions  of  all  kinds  shall  be  multiplied 
first,  as  the  best  preparation  for  later  developments. 
When  profit  sharing  proper  is  reached^  these  antece- 
dent institutions  should  not  be  discontinued.  They 
may  be  sufficiently  endowed  so  as  to  need  but  slight 
annual  contributions  from  the  firm  or  the  employees  or 
both.  The  conduct  of  them  should  be  devolved  upon 
the  workmen  themselves  so  far  as  possible.  The 
kindly  interest  of  the  employer  should  never  become 
so  "  paternal  "as  to  weaken  the  power  of  association  ' 
and  self-help  among  his  employees. 

Profit  sharing,  as  M.  Maurice  Vanlaer  says,  "  is 
one  form  of  patronage  [in  the  good  sense  of  the  word, 
meaning  the  employer's  active  good- will]  ;  it  is  not 
always  the  best.  .  .  .  Whenever  the  employer  wishes 
to  create  permanent  institutions  in  his  estabhshment, 
he  wiU  act  more  wisely  in  levying  upon  general  eav 
penses  the  sum  needed  for  their  support  than  in  aUot- 
ing  them  a  share  of  the  profits,  which  may  fail  to 
come."  ^     The  question  that  interests  the  lover  of  his 

1  La  Participation  aux  Binijices,  p.  273.    Paris,  1898. 


340  A  DIVIDEND  TO  LABOR 

kind  in  this  direction  is,  then,  to  find  how  many  em- 
ployers are  adopting  welfare-institutions  in  general, 
rather  than  how  many  are  dividing  profits  with  their 
workmen  in  a  formal  and  explicit  fashion.  Profit 
sharing  proper  may  come,  and  it  may  well  come,  as  a 
later  measure  when  the  other  institutions  have  been 
solidly  estabhshed,  as  at  the  great  works  of  Naeyer  et 
Cie  at  'Willebroeck  and  Grainheim  in  Belgium  (with 
branches  at  Prouvy,  Nord,  and  Renteria  in  Spain). 
Its  2,000  workmen  manufacture  boilers,  ice  machines, 
paper,  and  pates  a  papier.  For  a  long  time  the  firm 
provided  for  them  many  patronal  institutions,  includ- 
ing remarkably  easy  provisions  for  obtaining  homes  of 
their  own,  of  which  several  hundred  have  thus  been 
acquired.  In  1891  profit  sharing  was  introduced, 
without  detriment  to  existing  institutions.  Workers 
of  five  years'  standing  were  to  share  twenty-five  per 
cent,  of  the  net  profits,  the  shares  being  graded  ac- 
cording to  seniority.  These  simis  are  credited  to 
individual  accounts,  and  at  the  end  of  ten  years  they 
are  paid,  in  shares  or  in  cash,  as  the  company  may 
decide. 

A  manufacturer,  again,  who  has  made  his  fortune, 
may  wish  to  continue  his  business  simply  for  the  bene- 
fit of  his  workpeople.  He  can  then  do  as  M.  Molijn, 
a  prosperous  manufacturer  of  Rotterdam,  has  done. 
He  has  established  a  corporation  De  Veluwe  for  the 
manufacture  of  Japan  varnish,  dyes,  and  various  me- 
chanical and  horticultural  products  at  Nunspeet  in 
Gelderland,  Holland.  Wishing  to  give  his  employees 
all  the  advantages  of  modem  civilization,  he  has  pro- 
vided for  wholesome  dwellings,  baths,  food  prepared 
in  a  central  kitchen  and  bakery,  a  steam  laundry,  and 


PROFIT  SHARING  TO-DAY  341 

electric  light;  a  club-house,  aid  in  sickness,  retiring 
pensions,  and  other  desirable  institutions  are  also  pro- 
vided for,  out  of  sixty  per  cent,  of  the  profits,  after 
four  cent,  interest  has  been  allowed  to  capital.  The 
remaining  forty  per  cent,  is  paid  out  in  shares  of  two 
hundred  francs,  so  that  the  employees  will  in  time 
become  full  proprietors.  M.  Molijn's  system  pays  all 
the  workers,  male  and  female,  the  same  wages  —  a 
somewhat  doubtful  measure. 

The  Pia  Azienda  Tessile  of  Como,  Italy,  is  a 
unique  philanthropic  institution  for  giving  work  to  silk 
weavers  out  of  employment.  Its  donated  capital  draws  no 
interest.  The  workmen  weave  the  silk  at  home,  and  are 
paid  wages  slightly  below  those  current  in  the  labor  market. 
Each  half  year  they  further  receive  50  per  cent,  of  the  pro- 
fits ;  a  reserve  fund  gets  10  per  cent.,  and  the  director  20 
per  cent.  In  1872  the  capital  was  40,000  fr.,  and  the 
yearly  business  more  than  150,000  fr. ;  more  than  100 
workers  received  in  wages  37,272  fr. 

Of  two  instances  of  profit-sharing  in  Spain,  one,  the 
Royal  Tapestry  Factory  of  Madrid,  founded  by  Van- 
dergotten  in  1791,  is  probably  still  in  operation  ;  the  other, 
the  General  Tobacco  Company  for  the  Philippines, 
of  Barcelona,  has,  very  probably,  succumbed  to  the  fortunes 
of  war.  In  Portugal  the  tobacco  industry  furnishes  the 
one  example  of  participation.  The  law  of  May  22,  1888, 
abolished  free  competition  in  this  manufacture  and  estab- 
lished a  government  monopoly.  The  five  or  six  thousand 
workpeople  employed  in  the  business  (about  one  half  are 
women)  were  among  the  most  miserable  of  Portuguese 
operatives.  They  numbered  from  a  quarter  to  a  third 
more  than  enough  to  supply  the  market;  frequent  stop- 
pages of  work  and  reductions  of  the  piece-wages  were  the 
natural  result.  The  law  of  1888  guaranteed  steady  employ- 
ment for  eight  hours  a  day  at  the  existing  rate  of  wages ; 


842  A  DIVIDEND   TO  LABOR 

relief  in  case  of  sickness  and  disability ;  a  retiring  fund, 
supported  by  an  annual  gift  of  twenty  contos  de  reis  (about 
$22,000),  which  secured  a  minimum  allowance  of  8  fr. 
30  c.  a  week ;  creches  and  schools  in  the  workshops,  sup- 
ported by  the  State  and  the  employees  jointly ;  and  a  share 
in  the  profits.  In  the  four  factories  at  Lisbon  and  Oporto, 
the  entire  force  was  to  receive  from  the  excess  of  profits 
over  $3,850,000,  5  per  cent. ;  of  this  sum  74  per  cent,  was 
to  go  to  the  workpeople,  16  to  the  administrative  force,  and 
10  to  the  directors.  In  1891  the  manufacture  was  conceded 
to  a  society,  which  was  bound  by  its  contract  to  maintain 
the  bonus  system ;  after  5,150  contos  de  reis  had  been  set 
aside  for  fixed  charges,  5  per  cent,  of  the  profits,  above 
4,900  contos,  go  to  the  wqrkpeople,  and  1  per  cent,  to  the 
employes.  Other  stipulations  are  made  in  favor  of  the 
wage-earners.  The  result  of  these  arrangements  has  been 
great  harmony  and  comfort  among  them. 

The  latest  figures  concerning  profit  sharing  in  the 
British  Empire  give  ninety -four  firms,  employing 
from  60,647  to  53,010  persons,  according  to  the 
season  and  variations  of  trade.  Details  were  avail- 
able concerning  the  size  of  the  bonus  paid  in  1898 
for  seventy-five  cases.  Excluding  seventeen  cases,  in 
which  no  bonus  was  paid,  that  allotted  in  fifty-eight 
cases  was  at  the  average  rate  of  11.8  per  cent.i  The 
now  considerable  number  of  firms  which  have  prac- 

*  See  the  Labour  Gazette  for  August,  1899.  Mr.  David  F.  Schloss 
has  written  the  first  "  history  of  British  profit  sharing  "  in  Part  IV. 
of  his  extremely  valuable  Report  on  Profit  Sharing  (Eyre  and  Spottis- 
"woode,  10c/.)  made  to  the  British  Board  of  Trade  (Labour  Depart- 
ment), and  dated  March  31,  1894.  This  report  devotes  from  half  a 
dozen  lines  to  several  pages  to  each  instance.  In  the  Labour  Gazette 
for  each  year  since  1894,  the  statistics  of  British  profit  sharing  have 
been  given,  supplementing  the  Report.  Mr.  Schloss  has  named  the 
years  1865-67,  1872,  1886-88,  and  1894  as  showing  a  noteworthy 
number  of  new  cases  of  profit  sharing,  while  in  1889-92  the  large 
number  of  seventy-nine  new  attempts  were  made. 


PROFIT  SHARING  TO-DAY  343 

ticed  profit  sharing  for  years  with  good  results  are  re- 
inforced by  the  favorable  opinions  of  economists  like 
Professors  Alfred  Marshall  and  J.  S.  Nicholson,  of 
statesmen  like  Gladstone  and  Mr.  James  Bryce,  and 
the  active  good-will  of  noblemen  like  the  Marquis  of 
Eipon  and  Earl  Grey. 

The  trial  of  profit  sharing  by  an  English  firm  for 
the  longest  time  has  been  made  by  Fox  Brothers, 
woolen  manufacturers,  Wellington,  Somerset.  They 
had  for  some  years  given  to  their  managers,  foremen 
and  clerks  a  bonus  based  on  profits  and  on  value  of 
service,  and  in  1866  they  added  a  deposit  plan.  Any 
one  of  the  workpeople  making  a  deposit  with  the  firm 
receives  interest  varying  from  four  and  one  half  per 
cent,  as  a  minimum  to  ten  per  cent,  as  a  maximum, 
"in  accordance  with  a  certain  fixed  scale  based  on 
profits."  The  whole  number  of  employees  is  about 
1,100,  women  being  somewhat  in  the  majority;  the 
depositors  numbered,  in  1894, 125  men  and  24  women. 
Mr.  J.  H.  Fox,  of  the  firm,  read  a  paper  before  the 
Social  Science  Association  in  1881  giving  a  favorable 
but  not  enthusiastic  account  of  their  experience,  and 
his  opinion  "  has  in  no  respect  changed  since  then." 

Messrs.  Ross  and  Duncan,  engineers  and  boiler- 
makers,  Glasgow,  are  the  only  firm  that  is  on  record 
as  having  resumed  profit  sharing  after  once  abandon- 
ing it.  The  system  was  introduced  in  May,  1887 : 
one  bonus  was  distributed  the  next  October,  and  an- 
other a  year  later.  As  the  workmen,  according  to 
the  head  of  the  firm,  took  "  no  interest  in  the  matter, 
and,  indeed,  seemed  to  be  looking  upon  it  with  suspi- 
cion as  disguised  selfishness  attempting  to  establish  a 
kind  of  spy  system  of  some  men  on  others,"  the  firm 


344  A  DIVIDEND  TO  LABOR 

discontinued  the  plan.  But  it  was  afterward  resumed 
with  better  results.  A  consultative  committee  of 
masters  and  men  holds  monthly  meetings.  "  The  in- 
terest and  intelligence  shown  are  often  very  gratify- 
ing. .  .  .  We  are  quite  satisfied  that  our  profit-sharing 
attempts  and  our  conferences  with  workmen  have  cre- 
ated a  better  and  more  harmonious  spirit  throughout 
our  works." 

The  cooperative  society  at  Huddersfield,  which  suc- 
ceeded, under  the  same  name,  to  Wm.  Thomson  and 
Sons,  in  1886,  has  had  ten  years  of  general  prosper- 
ity ^  since  it  was  described  in  "  Profit  Sharing  between 
Employer  and  Employee  "  (pp.  292-295).  This  last 
year  was  one  of  loss  though  not  large :  the  society  was 
unable  to  pay  interest  on  share  capital  without  draw- 
ing on  the  reserve  fund.  The  workers  (on  fixed 
weekly  wages — forty-eight  hours  a  week)  are  all  part- 
ners in  the  enterprise ;  they  offered  to  pay  half  this 
interest  from  their  own  pockets,  so  that  only  one  half 
was  taken  from  the  reserve.  The  abolition  of  indi- 
vidual piece-work  has  increased  the  cooperative  spirit 
greatly ;  if  the  operatives  had  been  "  turned  into  the 
street  when  there  was  no  work,  instead  of  a  loss,  there 
would  have  been  a  profit ; "  but  a  cooperative  body, 
of  course,  could  not  do  this.  An  assurance  and  pen- 
sion fund,  for  the  relief  of  those  incapacitated  for 

^  In  1896,  for  instance,  after  allowing  for  depreciation,  and  paying 
£617  interest  on  loan  stock,  the  remaining  profit  of  £2,340  gave  £189 
to  the  reserve  fund,  £363  to  the  assurance  and  pension  fund,  and 
5  per  cent,  on  share  capital :  the  balance,  £1,347,  justified  a  bonus  of 
Is.  9d.  in  the  pound  on  wages,  and  Is.  in  the  pound  on  purchases 
above  £50 :  a  final  balance  of  £54  was  carried  forward.  The  Whole- 
sale Society  is  now  sole  agent  for  the  concern  with  English  coopera- 
tive  societies. 


PROFIT  SHARING  TO-DAY  345 

work  by  illness  or  accident  or  old  age,  was  established 
in  1892  with  £336  from  the  profits  of  the  year; 
three  men  are  now  receiving  10  s.  a  week,  and  two 
women  7s.  a  week.  The  fund  was  £1,415  19s.  2d. 
on  January  1,  1899.  "I  hold  this  new  fund,"  writes 
Mr.  George  Thomson,  the  head  of  the  society,  "to  be 
of  even  greater  importance  than  profit  sharing,  be- 
cause it  would  take  a  long  time  to  accumulate  from 
profits  a  sufficient  simi  to  realize  an  annuity  even  of 
10s.  per  week."  The  motto  of  the  Woodhouse  mills  is 
"  Truth  in  Industry ;  "  no  cotton  or  shoddy  is  allowed 
to  be  used.  The  workpeople  (all  men)  have  shown 
great  appUcation,  they  have  avoided  waste,  and  they 
have  greatly  diminished  the  cost  of  superintendence. 
Their  spirit  is  shown  in  the  fact  that  one  of  the 
weavers,  "  having  invented  a  great  improvement,  pre- 
sented it  to  the  society."  The  bonus  of  the  employee 
is  applied  to  the  purchase  of  stock  for  him  up  to  the 
legal  limit  of  £200.  The  experience  of  this  Hudders- 
field  society  is  of  great  value,  and  it  offers  much  en- 
couragement to  employers  who  may  wish  to  turn  their 
establishments  into  cooperative  societies  through  the 
instrumentality  of  profit  sharing  and  welfare-institu- 
tions. The  rules  give  the  managers  great  power,  but 
this  is  modified  by  the  existence  of  a  consulting  com- 
mittee :  the  cooperative  spirit  has  availed  itself  of  the 
strength  of  the  vigorous  employer. 

The  principles  of  profit  sharing  have  made  decided 
progress  in  the  English  cooperative  movement  in  the 
last  few  years.  According  to  Mr.  Schloss  ("  Methods 
of  Industrial  Remuneration,"  ch.  xxiii.)  in  1896  bo- 
nuses to  employees  were  paid  to  the  amount  of 
£22,525,  by  229  cooperative  stores.    The  Irish  Dairy- 


346  A  DIVIDEND  TO  LABOR 

ing  Societies,  fifty-six  in  number,  include  profit  shar- 
ing in  their  rules.  Ninety-one  productive  societies  ih 
England  and  Scotland  pay  a  bonus.  Cooperative  pro- 
duction has  made  a  remarkable  advance  in  the  last 
ten  years  in  the  United  Kingdom,  and  the  labor 
copartnerships  are  faithful  to  the  interests  of  the  em- 
ployee as  a  profit-maker.i 

In  1889  I  gave  a  list  in  "Profit  Sharing"  of 
twenty-four  cases  of  American  firms  practicing  the 
system  of  a  "  determinate  bonus "  to  labor,  and  an- 
other of  ten  cases  of  the  "  indeterminate  bonus."  In 
1899,  six  of  the  twenty-four  cases  continue  in  opera- 
tion, and  five  out  of  the  ten.  To  these  eleven  cases 
in  both  species  should  be  added  twelve  others  of  later 
date,  making  twenty-three  cases  in  1899  against  thirty- 
four  in  1889.2 

^  See,  especially,  Mr.  H.  D.  Lloyd's  highly  interesting  volume, 
Labor  Copartnership,  founded  on  a  visit  to  England  in  1897.  Mr. 
Lloyd  pays  due  honor  to  the  admirable  work  of  the  Labour  Associa- 
tion of  London. 

2  See  the  table  in  Appendix  II.  The  total  for  Europe  and  America 
is  322  cases.  Mr.  D.  F.  Schloss,  in  his  Methods  of  Industrial  Remuner- 
ation, third  edition,  says  (p.  254,  note)  that  "  many  of  the  cases  men- 
tioned by  Mr.  Gilman  as  examples  of  profit  sharing  will  be  seen  not 
to  fall  within  the  definition  of  that  method  adopted  in  these  pages." 
Mr.  Schloss  applies  the  term  profit  sharing  to  those  cases  only  "  in 
which  an  employer  agrees  with  his  employees  that  they  shall  receive, 
in  partial  remuneration  of  their  labor,  and  in  addition  to  their  ordi- 
nary wages,  a  share,  fixed  beforehand,  in  the  profits  of  the  undertak- 
ing to  which  the  profit-sharing  scheme  relates  "  (pp.  247,  248).  The 
note  on  p.  254  continues  by  naming,  in  parentheses,  a  number  of  firms 
lying  outside  of  this  definition :  but  it  here  names  five  firms  which  are 
included  in  the  indeterminate  bonus  list,  to  which  the  next  sentence 
refers:  "All  Mr.  Oilman's  cases  of  Indeterminate  Profit  Sharing  are 
also(!)  outside  our  definition."  The  severity  with  which  Mr.  Schloss 
applies  his  definition  appears  in  the  statement,  at  the  end  of  tliis  note, 
that  "  the  Wardwell  Needle  Co.  is  improperly  placed  among  the 
'  Determinates.' "  According  to  the  account  in  Profit  Sharing  (p.  318), 


PROFIT  SHARING  TO-DAY  347 

These  figures  indicate  a  remarkable  mortality 
among  cases  of  profit  sharing  in  the  United  States, 
especially  when  one  adds  to  the  list  six  or  seven  other 
cases  at  least,  in  which  the  plan  was  adopted  and 
afterward  abandoned  between  1889  and  1899.1  How 
far  these  numerous  apparent  failures  of  the  system  to 
sustain  itseK  and  bring  forth  good  results,  for  ten 
years  or  more,  are  due  to  circumstances,  and  how  far 
to  defects  in  the  system  itself,  will  appear  more  clearly 
in  Appendix  No.  III.,  in  which  I  have  carefully  ex- 
amined Mr.  Monroe's  article  and  his  conclusions; 
these  are  based  on  a  misleading  use  of  mere  eniuner- 
ation  of  cases,  which  should  properly  be  weighed  as 
well  as  counted.  As  has  been  said,  concerning  the 
general  situation,  it  was  to  be  expected  in  this  coun- 

this  company  agreed  with  its  employees  "to  divide  the  profits  of 
business  equally  "  —  which  should  appear  to  he  a  sufficiently  "  deter- 
minate "  proposition !  Mr.  Schloss  names  Procter  and  Gamble  and  Ara 
Cushman  and  Co.  as  cases  not  conforming  to  his  definition ;  but  he  fails 
to  see  that  "  a  share,  fixed  beforehand,  in  the  profits  of  the  undertak- 
ing," is  just  as  much  such  a  share,  and  just  as  definite,  if  the  basis  of 
division  of  the  net  profits  is  "  the  proportion  of  wages  paid  to  business 
done  "  (which  was  the  agreement  in  these  two  cases)  as  if  it  were  the 
proportion  of  wages  to  capital.  Since  1890  the  Procter  and  Gamble 
Company  pay  the  same  dividend  on  wages  as  on  stock,  thus  removing 
the  last  ground  for  Mr.  Schloss'  objection.  His  definition  seems  to 
me  too  rigid  for  practical  purposes.  When  Mr.  J.  W.  Tufts,  of  Boston, 
for  instance,  gives  one  per  cent,  on  wages  to  his  employees'  mutual  aid 
society,  and  allows  ten  per  cent,  interest  on  deposits  from  the  men, 
this  is  practically  profit  sharing,  though  as  the  g^ft  is  collective  in 
the  first  particular,  and  takes  the  form  of  a  premium  on  thrift  in  the 
second,  the  case  might  be  best  styled  one  of  "  employers'  institutions." 
I  have  expressed  my  agreement,  however,  with  M.  Vanlaer  that  profit 
sharing  proper  is  itself  to  be  ranked  under  patronage.  The  ques- 
tion is  largely  one  of  mere  terminology. 

1  Mr.  Paul  Monroe,  in  a  valuable  article  on  "  Profit  Sharing  in  the 
United  States  "  (The  American  Journal  of  Sociology  for  May,  1896),  has 
gfiven  the  most  detailed  statement  of  recent  American  experience  to 
be  found  in  print. 


348  A  DIVIDEND  TO  LABOR 

try  that  a  number  of  experiments  in  profit  sharing 
begun  not  long  before  the  protracted  siege  of  "  hard 
times  "  (1893-1897)  should  come  to  an  end  because 
of  inability  to  earn  a  bonus  and  consequent  discour- 
agement, while  others  begun  after  the  crisis  had  fairly 
set  in  should  soon  be  dropped.  Too  many  of  the 
experiments  made  show  a  painful  lack  of  seriousness 
in  dealing  with  a  grave  matter ;  in  others  the  trail  of 
the  amateur  is  but  too  visible.  The  unwisdom  of 
making  an  important  modification  of  the  wages  system 
with  the  expectation  that  in  one  or  two  years'  time  it 
would,  almost  automatically,  transform  a  difficult  situ- 
ation is  obvious.  One  of  the  chief  demands  of  such  a 
system  is  for  a  considerable  length  of  time,  requisite 
for  the  co(5perative  education  of  all  concerned,  —  a 
process  for  which  three  or  four  years,  at  the  lowest, 
are  none  too  many. 

When  one  reads,  then,  of  American  firms  which 
gravely  state  that  they  have  "  tried  profit  sharing  and 
found  it  a  failure  "  —  after  twelve  months  or  even  six 
months  only,  he  does  not  need  to  be  a  thick-and-thin 
partisan  of  the  system  to  ask  if  they  consider  it  a  mere 
toy,  and  to  inquire  if  they  would  respect  such  frivolity 
in  any  other  direction.  That  which  here  deserves 
respect  and  careful  study  is  the  experience  of  those 
American  firms  which  have  persevered  through  the 
initial  difficulties,  and  have  hot  been  dazzled  by  the 
early  victories  of  profit  sharing.  Some  of  these  have 
reached  what  seems  like  permanent  success ;  others, 
equally  persistent  (hke  the  Ara  Cushman  Company), 
have  found  circumstances  "  too  many  "  for  them,  and 
have  given  up  the  effort,  even  if  stiU  believing  in  the 
soundness  of  the  principle.     The  employer  who  con- 


PROFIT  SHARING  TO-DAY  349 

templates  a  trial  of  the  plan  will  not  disregard  the 
experience  of  any  other  capable  and  conscientious  em- 
ployer, but  he  will  pay  most  heed  to  the  record  of 
such  firms  as  the  five  described  in  the  last  chapter.^ 

Concerning  three  minor  American  instances,  a  few  par- 
ticulars may  be  of  interest.  The  Columbus  (Ohio)  Gas 
Company  practiced  for  the  ten  years  1885-95  the  method 
of  dividing  equally  with  its  men  tlie  saving  made  in  the  cost 
of  labor  per  unit  of  product ;  if  this,  for  example,  were  re- 
duced 5  per  cent,  in  any  year,  wages  would  be  increased  2.5 
per  cent.  A  point  having  been  reached  at  which  further  re- 
duction was  not  possible,  the  company  adopted,  in  1895,  the 
plan  of  paying  the  employees  the  same  semi-annual  divi- 
dend on  wages  as  the  stockholders  receive.  The  company 
may  pay  the  dividend  in  stock  (as  it  wishes  to  do)  until 
each  employee  earns  at  least  three  shares.  More  than  half 
of  the  seventy-five  employees,  qualified  for  participation  by 
one  year  of  good  service,  sold  their  first  stock  dividend  in 
1895.  The  Columbus  Traction  Company  has  paid 
its  first  dividend  to  its  employees  this  year,  —  one  per  cent, 
on  wages,  the  same  as  was  paid  to  stockholders  on  their 
shares. 

The  Ballard  and  Ballard  Co.,  a  large  flour-milling 
concern  of  Louisville,  Ky.,  has  gradually  extended  profit 

^  The  essential  logic  of  profit  sharing  has  not,  of  course,  been  dis- 
proved by  the  abandonment  of  numerous  trials  of  it  in  the  United 
States  for  various  reasons  in  the  last  ten  years.  The  argument,  for 
instance,  baaed  on  the  saving  of  what  usually  goes  to  waste  is  just  as 
sound  now  as  when  John  Marshall  of  Leeds  showed  Robert  Owen  over 
his  mills.  Mr.  Marshall  remarking,  "  If  my  people  were  to  be  careful 
and  avoid  waste,  they  might  save  me  £4,000  a  year,"  Owen  replied, 
"  Well,  why  don't  you  give  them  £2,000  a  year  to  do  it,  and  then  you 
yourself  would  be  the  richer  by  £2,000  a  year."  The  question  of 
favorable  or  unfavorable  circumstances  surrounding  a  particular  estab- 
lishment is  another  matter.  I  may  be  allowed  to  refer  the  reader  to 
the  closing  chapter  of  Profit  Sharing,  and  especially  to  the  cautions 
addressed  to  the  employer  on  pp.  436-439. 


350  A  DIVIDEND  TO  LABOR 

sharing  in  the  last  fifteen  years  in  a  manner  that  commends 
itself  on  general  principles.  It  first  gave  the  superintend- 
ent five  per  cent,  of  the  net  profits,  in  addition  to  salary. 
A  few  years  afterward  it  began  to  divide  ten  per  cent, 
among  the  salaried  employees.  "  After  certain  changes  had 
taken  place  in  our  salaried  force,  a  case  presented  itself 
where  a  typewriter  who  had  been  with  us  only  three  months 
was  participating  in  the  profits,  whereas  certain  laborers 
who  had  been  with  us  fifteen  years,  and  in  fact  ever  since 
we  had  been  in  business,  were  not  participating,  and  this 
struck  us  as  unjust.  We  therefore  determined  to  enlarge 
the  list  of  those  who  participated  in  this  ten  per  cent,  by 
including  such  of  our  wage-earners  as  had  been  with  us  two 
years :  so  that  the  list  was  very  largely  increased,  and  of 
course  the  amount  given  to  the  salaried  employees  was  di- 
minished." A  day-laborer  in  these  mills  begins  at  $1.25 
per  day  (the  usual  rate  in  the  city),  and  after  two  years  he 
receives  $2  a  day  and  a  share  in  the  profits.  He  njust  con- 
tinue in  the  service  until  the  Christmas  day  after  the  begin- 
ning of  the  company's  fiscal  year  on  July  1.  "  We  have 
found  that  the  laborer  who  gets  $1.75  per  day,  as  against 
$1.50,  is  apt  to  consume  that  extra  $1.50  a  week  in  living 
expenses,  the  corner  grocery  getting  practically  all  of  it ; 
whereas,  when  he  is  given  his  money  in  a  lump,  frequently 
amounting  to  as  much  as  six  or  eight  weeks'  wages,  he  has 
a  sum  which  is  a  nest-egg  and  to  which  he  can  add.  He 
can  pay  off  any  accumulated  doctors'  bills,  or  misfortunes, 
or  he  has  enough  to  make  a  slight  investment.  This  is,  to 
our  mind,  a  much  better  way  than  giving  a  small  increase 
of  wages  from  time  to  time.  The  plan  has  worked  admira- 
bly ;  .  .  .  after  the  lapse  of  some  years  ...  we  gave  each 
of  five  trusted  employees  an  additional  one  per  cent,  of 
our  net  profits,"  making  a  total  of  twenty-one  per  cent, 
distributed.  The  company  takes  out  insurance  for  its 
workmen  under  the  Workmen's  Collective  Policy,  without 
charge  to  them.  It  serves  a  lunch  for  the  office  force  and 
certain  other  employees,  which,  it  finds,  tends  to  fraternal 


PROFIT  SHARING   TO-DAY  361 

feeling.     The  workman  can  leave  his  bonus  on  deposit  with 
the  company,  if  he  wishes,  at  five  per  cent,  interest.^ 

^  The  Yale  and  Towne  system  of  "  gain  sharing "  has  been  given 
up  by  that  company.  Mr.  Alfred  Dolge's  fine  industrial  system  of 
"  just  distribution  of  earnings,"  by  means  of  a  large  variety  of  welfare- 
institutions  at  Dolgeville,  N.  Y.,  came  to  an  end  in  1898  through  his 
failure  in  business. 


CHAPTER  XI 

THE   EEASONABLE   WAY 

It  can  hardly  be  necessary,  after  detailing  the  in- 
formation contained  in  the  eight  preceding  chapters, 
to  enter  upon  a  labored  argument  in  justification  of 
the  employers  whose  practices  I  have  outlined.  Occa- 
sionally the  opinion  of  one  or  another  manufacturer, 
who  has  tried  these  novel  ways,  has  been  quoted  ;  but 
for  the  most  part  I  have  refrained  from  giving  such 
expressions,  preferring  to  let  the  facts  speak  for  them- 
selves.i  If  the  principles  set  forth  as  being  "  an 
essential  matter"  in  the  industrial  world  have  not 
now  commended  themselves  to  the  mind  of  one  who 
has  weighed  the  facts  herein  recorded,  argument  from 
general  considerations  would  probably  fail.  If  the 
ideal  first  set  forth  for  the  employer  as  realizable  has 
not  been  shown  to  have  been  realized  here  and  there 
among  men,  the  expositor  has  surely  been  at  fault. 

^  I  have  also  refrained  from  discussing  some  points  of  which  an 
extended  treatise  on  employers'  institutions  would  need  to  take 
notice.  The  question  how  far  wages  are  high  or  low  in  establish- 
ments having  such  institutions,  relatively  to  establishments  without 
them,  would  need  to  be  investigated  minutely.  It  may  safely  be 
taken  for  granted,  however,  that  wages  are  at  least  as  high  in  the 
great  majority  of  the  establishments  I  have  described  as  the  average 
outside.  It  is  another  interesting  question  at  what  point  the  ex- 
penditure by  the  employer  of  a  large  collective  dividend  for  his 
workmen  ceases  to  be  more  effective  for  their  good,  in  the  support  of 
institutions,  than  individual  shares  would  be  —  a  question  evidently 
depending  for  its  answer  upon  the  character  and  intelligence  of  the 
employees  in  each  specific  case. 


THE  REASONABLE  WAY  353 

Discussions  to  prove  the  existence  of  the  self-evident 
and  the  value  of  the  self -commending  have  little  charm 
in  a  busy  world. 

A  dividend  to  labor,  direct  or  indirect,  has,  in  fact, 
plainly  proved  itself  one  of  Burke's  "  healing  mea- 
sures," and  the  proof  of  its  reality  and  its  desirability 
may  be  held  to  have  been  given.  The  association  for 
the  amelioration  of  the  lot  of  employers  which  some 
one  has  declared  a  necessity,  might  well  give  pre- 
cedence to  this  question  on  its  order  of  the  day.  The 
employer  who  would  proceed  with  animation  but  with 
moderation  on  the  line  of  practicable  advance  has 
now  before  him  the  record  of  the  experience  of  many 
such  men  as  himseK,  who  have  blazed  the  way  for 
him  —  yes,  have  even  made  a  highway  in  the  social 
wilderness  for  him.  Realizing,  from  the  purely  finan- 
cial standpoint,  that  the  human  equipment  of  a  factory 
is  at  least  as  important  as  the  mechanical  equipment, 
these  sagacious  men  have  provided  for  its  mainte- 
nance at  the  highest  point  of  efficiency.  The  employer 
is  "  made  of  social  earth  "  as  well  as  his  operatives ; 
and  welfare-institutions  for  their  benefit,  undertaken 
merely  from  long-sighted  prudence,  can  hardly  fail  to 
bring  him  nearer  as  time  goes  by  to  a  living  sympathy 
with  these  men  and  women  of  like  passions  with  him- 
self. An  employer  who  concerns  himself  to  house  his 
help  well,  and  gives  them  the  benefit  of  his  capital, 
used  in  buying  land  on  a  large  scale,  laying  it  out 
with  a  view  to  health  and  beauty,  and  purchasing 
building  material  for  them  at  wholesale  rates,  may  be 
very  unconscious  that  he  is  a  social  reformer.  None 
the  less,  though  quite  independent  of  legislators,  and 
even  distrustful  of  "  theorists,"  he  is  doing  more  to 


354  A  DIVIDEND  TO  LABOR 

establish  democracy  on  its  necessary  moral  basis  and 
to  bring  in  the  Kingdom  of  God  than  the  social  en- 
thusiast whose  large  projects  meet  a  fatal  enemy  in 
the  facts  of  human  nature. 

In  a  notable  chapter  of  his  study  of  "  Democracy 
in  America,"  Tocqueville  showed  "  how  an  aristocracy 
may  be  created  by  manufactures."  Noticing  the  lack 
of  personal  relation  between  the  employer  and  those 
whom  he  employs,  this  great  observer  of  institutions 
says  :  "  The  manufacturer  asks  nothing  of  the  work- 
man but  his  labor ;  the  workman  expects  nothing 
from  him  but  his  wages.  The  one  contracts  no  obli- 
gation to  protect,  nor  the  other  to  defend,  and  they 
are  not  permanently  connected  by  either  habit  or 
duty.  The  aristocracy  created  by  business  rarely 
settles  in  the  midst  of  the  manufacturing  population 
which  it  directs.  .  .  .  An  aristocracy  thus  consti- 
tuted can  have  no  great  hold  upon  those  whom  it  em- 
ploys. .  .  .  The  territorial  aristocracy  of  former  ages 
was  either  bound  by  law,  or  thought  itself  bound  by 
usage,  to  come  to  the  relief  of  its  servingmen,  and  to 
succor  their  distresses.  But  the  manufacturing  aris- 
tocracy of  our  age  first  impoverishes  and  debases  the 
men  who  serve  it,  and  then  abandons  them  to  be  sup- 
ported by  the  charity  of  the  public.  This  is  a  natural 
consequence  of  what  has  been  said  before.  Between 
the  worlunan  and  the  master  there  are  frequent  re- 
lations, but  no  real  association." 

In  a  certain  sense  it  may  be  said  that  this  whole 
volume  would  serve  as  a  conunent  on  this  passage 
from  Tocqueville.  The  facts  of  the  industrial  situa- 
tion when  he  wrote  indicated  only  too  plainly  such 
tendencies  as  he  deplored,  but  did  not  consider  fatal. 


THE  REASONABLE   WAY  865 

"  I  am  of  opinion,  on  the  whole,"  he  continued,  "  that 
the  manufacturing  aristocracy  which  is  growing  up 
under  our  eyes  is  one  of  the  harshest  which  ever  ex- 
isted in  the  world ;  but,  at  the  same  time,  it  is  one  of 
the  most  confined  and  least  dangerous.  Nevertheless, 
the  friends  of  democracy  should  keep  their  eyes 
anxiously  fixed  in  this  direction :  for,  if  ever  a  per- 
manent inequality  of  conditions  and  aristocracy  again 
penetrate  into  the  world,  it  may  be  predicted  that  this 
is  the  gate  by  which  they  will  enter."  ^ 

TocqueviUe's  warning  was  justified  by  such  facts  of 
the  oppression  of  the  poor  in  the  textile  industries  as 
I  have  presented  or  alluded  to,  in  Part  I.  of  this 
work.  His  optimism  has  been  sustained  by  such  facts 
of  an  opposite  order  as  show  the  increasing  recogni- 
tion of  his  moral  responsibilities  by  the  employer  of 
the  last  seventy  years.  Moral  forces  working  upon 
numerous  manufacturers  in  Germany,  France,  Eng- 
land and  America  have  brought  home  to  their  con- 
sciences the  sacredness  of  their  trust  of  which  Labor 
Commissioner  Wright  speaks.  Beyond  the  compara- 
tively few  specifications  here  given  of  the  more  strik- 
ing instances  of  employers'  concern  for  their  em- 
ployees, there  is  a  vast  body  of  scattered  evidence  of 
their  liberality  to  the  towns  in  which  they  live.  Many 
an  industrial  village  in  New  England,  for  example, 
gives  plainest  proof  that  the  successful  manufacturer 
does  not  always  keep  his  business  relations  with  his 
operatives  and  his  profession  of  Christian  morals 
widely  sundered !  That  many  more  may  be  led  to  do 
consciously  and  on  a  large  scale  what  not  a  few  are 

^  Democracy  in  America,  vol.  iL  pp.  196,  197  (Century  Company's 
edition). 


356  A  DIVIDEND   TO  LABOR 

to-day  doing  is  the  object  which  has  inspired  this 
voliune. 

WeKare-institutions  —  home  building ;  insurance 
against  accident,  iUness,  old  age,  and  death ;  schools ; 
libraries  and  lecture  courses ;  workmen's  club-houses ; 
premiums  on  wages ;  employees'  stockholding ;  the 
workman  director ;  gain  sharing ;  profit  sharing ; 
labor  copartnership  and  other  methods  —  now  rest  on 
the  solid  ground  of  manifold  experience.  They  will 
flourish  and  increase  as  the  employers  of  labor  on  a 
large  scale  view  the  whole  range  of  their  duties  with  a 
keener  eye.  The  change  from  a  simple  wage  contract, 
with  scarcely  a  touch  of  himian  interest  in  it,  will  be 
gradual,  like  all  really  fruitful  and  permanent  social 
reforms.  "  Father  Time  consecrates  nothing  that  is 
done  without  him."  These  institutions  are  not  for  a 
day  or  a  year  :  they  have  the  lease  of  generations,  and 
their  title  to  perpetuity  is  guaranteed  by  the  social 
conscience  of  civilized  mankind. 

The  wages  system,  in  one  form  or  another,  will  long 
endure,  it  is  probable,  among  men ;  but  we  may  weU 
believe  that  its  future  will  be  more  diversified  than 
its  present.  Education  of  hand  and  brain  will  gradu- 
ally raise  the  level  of  intelligence  among  working 
popidations.  Machinery,  after  the  inevitable  tem- 
porary injury,  wiU  everywhere  increase  their  comfort 
and  lighten  their  toil.  Moral  forces  working  upon 
them  wiU  dissolve  the  specious  rhetoric  that  opposes 
the  workman's  acquirement  of  a  home  and  the  cheap 
logic  that  represents  the  workman  who  accepts  the 
employer's  sincere  offers  of  friendly  association  as  "  a 
deserter  from  the  army  of  labor."  The  much-dreaded 
trusts  win  probably  hasten  the  day  of  industrial  peace 


THE  REASONABLE   WAY  357 

by  a  more  scientific  treatment  of  the  "living  ma- 
chinery "  they  employ,  in  keeping  with  their  economic 
and  scientific  wisdom  shown  in  the  processes  of  manu- 
facture and  ti'ansportation. 

Not  the  be-all  and  the  end-all  of  social  reform  (for 
man  is  an  animal  ever  needing  reformation),  weKare- 
institutions  like  those  here  depicted  will  doubtless 
play  a  larger  and  larger  part  in  the  development  of 
industry.  The  study  of  them  is  easy  and  the  imita- 
tion of  them  not  difficult  for  able  men.^  Their 
gradual  introduction  will  give  all  parties  a  better  in- 
tellectual perception  of  the  real  demands  of  modern 
industry  upon  workers  with  head  or  hand.  The 
management  of  them  by  those  who  are  chiefly  to  bene- 
fit by  them  will  be  a  school  of  good  judgment  and 
fraternal  feeling  toward  their  employers  and  their 
feUows  as  well.^  Such  a  practical  education,  aided  by 
a  scheme  of  popular  instruction  revised  in  the  direc- 
tion of  manual  training  and  economic  guidance,  will 
do  an  irresistible  work,  convincing  them  that  mankind 
can  steadily  move  toward  a  harmony  in  which  all 
human  interests  are  reconciled. 

I  would  not  be  understood  as  placing  a  final  trust 
in  the  mere  machinery  of  such  welfare-institutions  as 
have  been  described  in  this  volmne,  —  "  new  combi- 
nations  grafted   on   the  wages   system,"    as   M.    E. 

^  See  Appendix  I.  on  Some  Dangers  of  Paternalism. 

2  Such  a  management  ■would  not  easily  consent  to  forfeiture  clauses, 
as  a  rule  :  these  clauses  are  much  better  omitted,  even  when  the 
sums  forfeited  by  an  employee  leaving  a  factory  go  to  the  mutual  aid 
fund.  So  said  the  Profit  Sharing  Congress  at  Paris,  in  1889,  by  a 
unanimous  vote,  and  M.  Cheysson  emphatically  supports  this  view. 
The  experience  of  the  Solvay  Company  (p.  2S7)  is  instructive.  The 
employer  should  avoid  the  suspicion,  even,  of  desiring  to  confiscate 
the  workman's  savings,  under  any  circumstances. 


358  A  DIVIDEND   TO  LABOR 

Levasseur  might  call  them.  Pension  funds  and  acci- 
dent insurance,  for  instance,  are  good  things,  but  they 
are  not  good  enough  to  constitute  in  themselves  a 
security  for  industrial  peace  regardless  of  their  source. 
If  they  have  sprung  from  a  transient  mood  of  gener- 
osity in  an  employer  whose  usual  temper  is  distrust 
and  dislike  of  his  workingmen,  they  will  accomphsh 
little  in  the  way  of  establishing  harmony.  Good-will 
in  the  employer,  a  steadfast  desire  to  be  the  helper  of 
his  employees,  is  the  one  trustworthy  foundation.^ 
"  Not  a  patron  but  a  friend"  is  the  workman's  need, 
to  paraphrase  the  excellent  motto  of  Charity  Organi- 
zation. 

When  masters  of  industry,  true  "  social  author- 
ities," as  Le  Play  called  them,  are  humanely  disposed 
toward  their  fellow-men  who  work  for  them,  we  have 
the  tap-root  of  industrial  peace.  Such  a  manufacturer 
may  have  accident  funds  and  special  schools  for  his 
works  or  not,  for  this  is  not  material.  The  important 
point  is  that  he  show  his  humanity  in  his  important 
office  by  relieving  the  injured  and  educating  the  young 
in  one  or  another  way.  Thousands  of  employers,  un- 
doubtedly, are  to-day  generously  aiding  men  or  women 
injured  in  their  miUs  beyond  what  any  statute  re- 
quires, or  helping  to  educate  especially  intelligent 
children  of  workmen,  but  doing  this  in  individual 
cases,  not  systematically.  Such  a  captain  of  industry, 
who  has  a  persistent  good-will  toward  his  employees 
may,  with  -all  his  lack  of  rules  and  system,  be  on  far 
better  terms  with  them  than  an  employer  of  an  inhu- 
man spirit  who  has  erected  a  formidable  series  of  wel- 

^  "  Tant  vaut  I'hoinme,  tant  vaut  la  formule,"  as  M.  Clieysson  well 
puts  it :  "  The  formula  is  worth  only  what  the  man  is  worth." 


THE  REASONABLE   WAY  359 

fare-institutions  for  a  guarantee  simply  of  his  own 
prosperity. 

Trust  in  machinery  as  a  substitute  for  specific 
kindliness  is  one  of  the  besetting  sins  of  social  re- 
formers. The  best  preventive  of  this  tendency  in  an 
employer  is,  doubtless,  the  good  deed  he  does  for  any 
one  of  his  workmen  out  of  pure  good-will.  He  cannot 
fail,  any  more  than  others,  to  become  interested  in 
the  man  whom  he  has  once  helped  in  this  spirit,  and 
each  new  instance  of  his  own  well-doing  will  confirm 
such  a  spirit  in  him.  When  the  employer  feels  the 
necessity  of  systematizing  his  benevolence,  to  save 
delay,  he  will  wisely  bear  in  mind  the  necessity  of 
refreshing  the  institution  he  creates,  from  time  to 
time,  with  a  touch  of  personal  interest.  WeKare- 
institutions  are  good,  I  repeat,  but  the  individual 
workingman  is  not  himself  an  institution,  and  he  is 
not  satisfied  to  be  treated  abstractly,  as  if  he  were  a 
formula.  He  cannot  be  moralized  himself,  he  cannot 
aid  in  moralizing  the  employer,  imless  some  one  in 
authority  treats  him  as  a  human  person,  of  very  indi- 
vidual feelings  all  compact. 

To  close  as  we  began,  the  education  most  needed 
by  modern  employers  is  in  deeper  appreciation  of  the 
value  of   moral  forces  in  industry ,i  a  finer  sense  of 

1  The  employer  who  sometimes  inclines  to  envy  the  rigid  discipline 
of  an  army  would  do  well  to  read  the  article  on  the  Art  of  War  in 
the  Encydapcedia  Britannica.  "In  all  periods  of  war,"  it  says, 
"  under  all  conditions  of  arms,  the  moral  forces  which  affect  armies 
have  been  the  great  determining  factors  of  victory  and  defeat."  On 
a  "  nice  feeling  of  the  moral  pulse  of  armies  .  .  .  the  skill  of  great 
commanders  has  chiefly  depended.  In  that  respect  there  is  nothing 
new  in  the  modem  conditions  of  war.  .  .  .  The  change  consists  in  the 
substitution  of  organization  for  drill  ...  a  living  organism  must  take 
the  place  of  a  mechanical  instrument.' '     Vol.  xxiv.  pp.  343,  344. 


360  A   DIVIDEND   TO  LABOR 

equity  and  a  truly  rational  philanthropy.  It  is  always 
difficult  for  a  class  of  men  who  have  not  themselves 
originated  the  system,  economic  or  political,  under 
which  they  live,  to  realize  its  defects,  —  defects  which 
the  testing  hand  of  Time  makes  evident  to  the  ju- 
dicious and  the  disinterested.  It  is  hard  to  bring  home 
to  our  own  practice  the  fact  that  the  progress  which 
we  most  need,  as  our  proud  material  civilization 
advances,  is  to  strengthen  its  moral  foundations. 
Otherwise  it  cannot  long  endure  the  subtle  assault  of 
corroding  envy  and  undermining  hate  felt  by  the  less 
fortunate  classes  of  our  manifold  society.  As  wealth 
increases  prodigiously,  and  the  eager  thoughts  of 
strong  men  are  more  and  more  occupied  with  the  life 
that  now  is,  leaving  unnoticed  the  "  consolations  "  of 
a  religion  occupying  itself  chiefly  with  a  Hf  e  to  come, 
there  is  a  growing  need  of  refreshing  every  accessible 
source  of  moral  inspiration,  of  knitting  closer  the 
weakening  bonds  of  hmnan  fellowship,  and  of  estab- 
lishing every  institution  solidly  upon  the  eternal  bed- 
rock of  justice  and  righteousness.  In  the  great  world 
of  labor  this  means  that  arrangements  which  have  suited 
other  times  with  a  less  haunting  sense  of  social  duty 
must  be  revised  and  adapted  to  the  new  light  and  the 
profounder  impulse  of  fraternity.  If  socialism  were  a 
workable  scheme,  it  would  certainly  have  a  fuU  trial 
in  the  next  century  in  more  than  one  country.  But 
it  will  not  work,  and  better  plans,  more  modest  in 
promise  and  more  effective  in  result,  will  come  to  the 
front. 

Among  such  systems,  more  equitable  and  more 
successful  than  the  unmodified  wages  scheme,  the 
method  of  a  dividend  to  labor  commends  itself  more 


THE  REASONABLE   WAY  361 

and  more  to  far-sighted  business  sagacity,  as  well  as  to 
enlightened  philanthropy.  In  its  various  forms,  direct 
or  indirect  (we  need  not  pin  our  faith  to  any  single 
form),  no  plan  of  carrying  on  industrial  undertakings 
pays  more  respect  to  the  inevitable  conditions  of  the 
largest  success.  The  high  and  necessary  offices  of 
capital  and  skill  are  duly  recognized;  the  authority 
of  the  manager  is  properly  respected,  while  the  hand- 
worker is  not  viewed  simply  as  a  machine,  but  is  ele- 
vated into  a  moral  partnership  that  is  effective  and 
ennobling.  No  method  has  yet  been  devised  for  ren- 
dering the  whole  force  of  an  industrial  establishment 

—  physical,  mental,  moral  —  more  powerful  and  pro- 
ductive than  this  simple  plan  of  making  all  the  agents 

—  capital,  business  talent,  labor  —  partners  in  the 
profits.  Where  the  banner  of  weKare-institutions  is 
firmly  erected  and  persistently  followed  the  jealousy 
of  Ephraim  departs,  and  the  enmity  in  Judah  is  at  an 
end.  In  the  deep  consciousness  of  a  common  life,  the 
full  recognition  of  a  common  aim,  and  the  just  di- 
vision of  a  common  product,  the  industrial  members 
work  together  as  one  body,  —  head  and  heart  and 
hand  agreeing  in  one  conspiracy  of  benefit.  Great 
even  now  is  their  reward  who  aspire  and  cooperate 
toward  such  fraternity,  inspired  by  an  unfailing  en- 
thusiasm for  humanity. 


APPENDIX 
APPENDIX  I 

SOME   DANGERS   OF   PATERNALISM 

The  experience  of  the  Blanzy  mines,  alluded  to  on  pp.  129,  130, 
showed  the  proprietors  very  forcibly  the  dangers  that  may  accompany 
extreme  paternalism,  howevfijcj^ell  meant.  _  The  worst  strikes  at 
Montceau-les-Mines  (as  at  Le  Creusot  and  some  Belgian  coal  mines) 
have  arisen  from  difficulties  concerning  the  patronal  institutions. 
The  Blanzy  Company,  as  I  have  pointed  out,  learned  the  lesson  in 

time,  that  such  inat;filtimw^lnf.ii1r|   nr.<-  nuippln  ttin  HV^oyfy  /%f  the  WOrk- 

men,  and  that  they  should  gradually  be  put  into  the  hands  of  the 

employees,  as  these  become  more  independent  and  better  informed. 

A  strike   to    do   away  with  welfare-institutions   wHT  seem   strange 

only  to  those  who  think  of  workingmen   as  a  permanently  subject 

class.     The  Blanzy  Company  was  not  open  to  the  full  force  of  Henry 

George's  severe  words,  —  "  The  protection  that  certain  employers  give 

their  workmen  is  the  same  as  that  afforded  by  men  to  their  brutes, 

which  they  protect  in  order  that  they  may  make  use  of  and  devour 

them."     But  M.  G.  de  Molinari,  the  well-known  economist,  saw  the 

root  of  the  trouble  at  Montceau  and  wrote  of  it  in  the  "  Journal  des 

Economistes  "  in.  November,  1882.     His  conclusion  was  thus  stated :  — 

^    "  The  defect  of  institutions,  more  or  less  philanthropic,  that  com- 

(         panics  or  simple  individual  contractors  establish  in ,  fasoj__of  their 

\         workmen,  is  that  these  complicate  their  relations  with  them,  andj  con- 

\ aequently,  increase   occasions  for  disagreement.     They  also,  in  fact, 

Y^-^iminish  the  liberty  of_the  workineiujffho_  find  themselves  bound  to 
the  workshops  or  the  mine,  notwithstanding  a  higher  rate  of  wages  is 
offered  them  ~els"e where,  by  their  payments  towards  the  purchase  of  a 
j  house,  the  obligatory  participation  in  the  pension  bank,  and  the  debts 
L  that  they  have  contracted  at  the  provision  stores.  The  result  is  a 
state  of  subjection  that  does  not  fail  to  become  insupportable  when 
the  employer  attempts,  according  to  the  example  of  t lie  manager  of 
the  company  of  Montceau-les-Mines,  to  prevent  all  manifestations 
against  his  personal  opinions.  This  condition  of  affairs,  between  the 
company  and  its  workmen,  perfectly  explains  the  success  of  the 
'  mouvement  collectiviste  anaxchiste '  of  Montceau." 


APPENDIX  863 

The  company  realized  the  great  need  of  abandoning  patriarchal- 
ism.  Its  report  to  the  Jury  of  the  Social  Economy  Section  of  the 
Exposition  of  1889  treated  the  subject  very  sagaciously.  I  give  the 
substance  of  it :  — 

"  Employers'  institutions,  even  while  rendering  the  greatest  service, 
have  not,  perhaps,  given  results  commensurate  with  the  sacrifices 
made  by  the  company.  One  is  generally  apt  to  lightly  appreciate 
■what  has  cost  no  trouble  ;  we  accustom  ourselves  to  consider  favors 
as  rights.  We  readily  believe  that  those  who  do  us  a  kindness  are 
acting  from  self-interest.  Worse  yet ;  when  a  sort  of  providence 
supplies  all  his  needs,  without  exacting  from  him  any  effort,  the  work- 
man ceases  to  rely  upon  himself  —  he  loses  his  inclination  for  pru- 
dence, for  economy,  because  he  no  longer  feels  the  necessity  of  them ; 
his  initiative  is  extinguished,  his  dignity  diminishes,  he  is  ripe  for 
socialism. 

"  These  results,  the  consequences  of  patronage  carried  too  far,  began 
to  be  felt  at  Montceau  some  years  ago.  At  the  same  time,  by  a  kind 
of  reaction  natural  enough,  the  spirit  of  association  began  to  revive. 
Cooperative  bakeries,  mutual  aid  societies,  and  trade-unions  were 
formed  in  the  country.  The  new  movement  was,  in  fact,  directed  into 
revolutionary  socialistic  channels,  rather  than  philanthropic  ones; 
but,  when  all  is  said,  it  existed,  and  it  denoted  a  certain  state  of  mind 
with  which  it  was  prudent  to  reckon.  The  Blanzy  Company  compre- 
hended the  situation.  While  preserving  its  patronal  institutions,  all 
of  which  had  serious  reasons  for  existence,  at  least  until  they  were 
replaced  by  something  else,  they  resolved  to  utilize  this  movement 
toward  association,  to  encourage  it,  and  to  keep  it  in  the  field  of  the 
possible.  For  some  years  they  have  followed  an  entirely  new  path, 
and  certainly  the  right  one.  Moreover,  they  are  not  alone  in  follow- 
ing it. 

^,^"  To  excite  initiative  in  the  workman :  to  give  him  economic  edu- 
cation ;  to  habituate  him  to  depend  more  upon  himself  and  less  upon 
his  employer ;  to  teach  him  to  direct  his  own  affairs ;  this  is  prefer- 
able to  that  species  of  tutelage  under  which  we  are  led,  by  pure 
benevolence  indeed,  to  treat  the  workman  as  if  he  were  incapable  of 
comprehending  his  own  interests.  The  employer  should  not  hesitate 
to  have  recourse  to  association  when  it  is  possible.  Under  this  sys- 
tem, he  is  no  longer  solely  responsible  for  the  happiness  of  his  work- 
men. Being  associated  with  him  in  his  efforts,  they  share  respon- 
sibility with  him,  and  even  assume  the  greatest  part  of  it.  This, 
moreover,  does  not  prevent  the  employer's  interesting  himself  as 
much  as  he  desires  in  the  material  and  moral  well-being  of  his  work- 
people and  making  all  the  sacrifices  he  may  judge  proper.  But  he 
gives  better  ;  what  he  gives  is  more  appreciated,  because,  to  his  own 
efforts,  to  his  own  sacrifices,  are  joined  the  efforts  and  sacrifices  of 


364  APPENDIX 

those  interested,  who  pat  in  practice  the  old  precept :  '  Help  yourself 
and  God  will  help  you.' 

"Many  employers  are  hostile  to  workmen's  associations,  because 
they  fear  them ;  they  see  in  them  centres  of  disorder  and  evil  spirit. 
Strictly  speaking,  we  might  understand  this  view,  if  the  movement 
towards  association  could  be  arrested ;  but  the  current  is  irresistible. 
Something  is  wanted  to  distract  the  workman,  a  change  from  his 
habitual  work;  he  has  a  certain  amount  of  intellectual  activity  to 
dispose  of ;  he  must  dispose  of  it  well  or  ill,  and  associations  founded 
with  an  economic,  social  or  moral  aim,  or  simply  established  to  procure 
for  their  members  seemly  recreation,  are  really  the  best  aliment 
that  can  be  offered  to  such  a  craving ;  they  are,  besides,  the  bes^ 
derivative,  the  best  safety-valve  against  popular  passions.  Well- 
)\?  directed  associations  contribute,  moreover,  powerfully  to  consolidate 
social  peace,  because  they  teach  men  to  take  account  of  themselves, 
to  know  themselves,  to  appreciate  themselves.  They  afford  the 
means  of  more  readily  unmasking  intriguers,  and  useless  noisy  fel- 
lows. 

"  Finally,  there  is  the  brute  fact  that  dominates  the  whole  situation  ; 
the  current  exists,  the  associations  are  establishing ;  and,  if  we  do  not 
have  them  with  us,  we  have  them  against  us.  There  is  no  room, 
therefore,  for  hesitation.  At  Montceau  we  have  only  to  congratulate 
ourselves  upon  the  new  path  on  which  we  have  entered.  The  initiative 
of  the  workmen  has  surpassed  all  our  hopes.  Associations  are  multi- 
plying, and  we  may  believe  that,  some  day,  they  will  everywhere 
replace  employers'  institutions,  or  at  least,  that  these  will  be  so 
modified  that  the  workmen's  efforts  will  everywhere  be  associated 
with  those  of  the  employer ;  but  such  a  change  can  only  come  about 
slowly.     Time  consecrates  nothing  that  is  done  without  him." 

The  Soci^t^  de  la  Vieille  Montague,  unlike  the  Blanzy  mines,  has 
been  free  from  strikes,  while  maintaining  the  great  variety  of  welfare- 
institutions  described  on  pp.  171-173.  Its  pamphlet  presented  to  the 
Exposition  of  1889  shows  the  reason  :  — 

"1.  The  best  mode  of  remuneration  for  workmen  is  that  which 
interests  them,  not  in  the  general  advantages  of  the  enterprise,  but  in 
industrial  results  on  which  they  can  exercise  a  direct  personal  influ- 
ence. 

"  2.  Wages,  to  be  sufficient,  must  permit  the  workman  not  only  to 
live,  but  also  to  save ;  that  is  to  say,  they  must  secure  not  only  pre- 
sent but  future  wants. 

"  3.  Even  if  receiving  such  wages,  the  workman  will  not  save  or 
acquire  property  save  under  exceptional  circumstances,  if  the  em- 
ployer affords  him  no  opportunity,  either  by  the  establishment  of 
savings-banks  or  by  advances  made  with  a  liberal  prudence. 

"  4.   Even  with  these  advantages,  only  a  minority  of  skilled  work- 


APPENDIX  365 

men  are  able  to  profit  by  snch  institutions.  The  majority  require  to 
be  protected  against  the  results  of  sickness,  infirmities,  and  old  age 
by  employers'  institutions,  relief  funds,  provident  societies,  etc. 

"  5.  Two  conditions,  too  often  neglected,  are  absolutely  necessary 
for  the  proper  working  of  these  funds,  to  avoid  their  ruin. 

"  (a)  The  first  consists  in  rendering  an  exact  statement  of  their  pre- 
sent liability  and  especially  of  their  future  calls,  and  in  establishing 
their  resources  solidly  with  the  necessary  reserves. 

"  {b)  The  second  consists  in  doing  away  with  the  two  systems  of 
administration,  either  of  the  employer  solely  or  the  workman  alone, 
and  in  adoptfng  a  mixed  system. 

"  Tlius  only  can  we  interest  the  workmen  in  the  proper  management 
while  retaining  the  necessary  control  by  the  employer." 

Dr.  E.  R.  L.  Gould's  statement  (Report,  p.  328)  alluded  to  on 
p.  261,  is  to  the  effect  that  the  Willimantic  Linen  Thread  Company, 
under  its  present  management,  "  believes  that  the  i)eople  do  not  wish 
to  be  helped  gratuitously."  He  then  quotes  the  management  con- 
cerning Colonel  Barrows'  arrangements  for  lunch  at  a  morning  inter- 
mission, for  the  women's  dinner  hour,  and  for  magnifying  glasses 
given  to  the  inspectors  of  thread  —  all  of  which  "  were  not  received 
with  favor."  I  do  not  consider  this  ex  parte  testimony  sufficient  to 
establish  the  truth  of  Dr.  Gould's  remark,  that  "  there  is  undoubtedly 
something  in  the  American  temperament,  or,  perhaps  one  had  better 
say,  in  the  temperament  of  laborers  working  in  America^  which  is 
hostile  to  gratuitous  help  from  employers."  This  unqualified  posi- 
tion is  quite  in  contradiction  to  many  facts  given  in  this  volume. 
The  manner  of  giving  is  very  important. 


366 


APPENDIX  II 

LIST   OF   PROFIT-SHARING   FIRMS  ^ 
FRANCE. 


Bate. 


1811 


1839 
1842 

1843 

1848 
1848 
1848 
1849 
1850 

1853 
1854 
1854 

1855 
1855 
1865 
1868 

1870 

1871 

1871 
1871 
1871 
1872 
1872 
1872 


Name. 


Imprimerie  Nationale,  Paris  ^ . 


Seydoux  et  Cie,  Cateau^ 

Maison  Leclaire  (Redouly  et  Cie), 

Paris 

Papeterie    Cooperative,     Angou- 

l§me* 

Deberny  et  Cie  (Tuleu),  Paris  ^. . . 

Paul  Dupont,  Paris 

Gaidan,  Nimes 

Gaz  du  Mans,  Le  Mans 

Assurances    G^n^rales    (Cie     d'), 

Paris 

Le  Ph^nix,  Paris 

L'Union,  Paris 

J.  Chagot  et  Cie,  Blanzy  ^ 


La  Nationale,  Paris 

La  France,  Paris 

Suez  Canal  Company,  Paris 

Renard,  Vinet  et  Bunaud,  Lyons  ^ 

Society  des   Tissus  de  Laine  des 

Vosges,  Thillot  et  Trougemout . 

Pernod,  Pontariier  * 


Roland-Gosselin,  Paris  ^ 

Vernes  et  Cie,  Paris  ^^ 

Abadie  et  Cie,  Theil " 

Auberi;  et  Terrade,  Versailles. . . . 
Barbas,  Tassart  et  Balas,  Paris  ^^ 
Imprimerie  Chaix,  Paris  ^'^ 


Printing 


Textiles. 
Painters 


Paper 

Type-founders. 

Printer  

Banker 

Gas  company. 


Insurance . . 
Insurance . . 
Insurance . . 
Coal  mines. 


Insurance 

Insurance 

Transportation. 
Dyers 


Textiles. 
Distiller. 


Broker  . . . 
Bankers  . 
Paper. . . . , 
Printers. . . 
Plumbers 
Printers. . , 


Bonus. 


Col. 
Ind. 
Def. 
C. 

C.  P. 

C. 
P. 
P. 
C. 


P. 

P. 

P. 

Col. 

Ind. 

P. 

P. 

C.  P. 

Ind. 

C. 

C.  P. 

Ind. 

Def. 

P. 

P. 

C. 

C. 

C.  P. 

C.P. 


1  In  the  fourth  column  C.  denotes  cash  pajrment;  P.,  investment  in  some  kind 
of  provident  fund  ;  Ind.,  indefinite  percentage  ;  Def.,  deferred  pajonent ;  Col., 
a  collective  bonus ;  the  plans  thus  indicated  are  sometimes  combined. 

2  Levied  on  general  expenses.  ^  Chief  employees.  *  CoSperative  plan. 
8  Pensions  ;  committee.                     ^  Patronal.                       '  Oratifications. 

'  Patronal.  *  Patronal.  •"  Patronal. 

11  Shareholders.  '^  Committee.  ^^  Committee. 


APPENDIX 
FRANCE  —  Continued. 


367 


Date. 


1872 

1872 
1872 
1872 


A.  Godchaux  et  Cie,  Paris. 
Hanappier,  Bordeaux  ^ . . . . 

L'Aigle,  Paris 

Le  Soleil,  Paris. 


1872  Soci^t^  des  Mat.  Col.,  St.  Denis 


1874 
1874 
1875 
1875 
1875 

1876 

1876 

1877 
1877 

1877 

1879 
1880 
1880 
1880 
1880 
1881 
1881 
1881 

1882 
1882 
1882 
1882 
1882 
1882 
1883 
1883 
1884 
1885 
1885 
1885 
1885 


A.  Mame  et  Fils, Tours. 

G.  Masson,  Paris  - 

Coraptoir  d'Escompte,  Kouen. 

L'Urbaine,  Paris 

0.  Fauquet,  Oissel  ^ 


Morin,  Tillot,  Ricois  et  Cie,  Au 
Bon  March^,  Paris  * 

L'Abeille,  Paris 

Colin  et  Cie,  Guise  ^ 

Corapagnie  G^n^rale  Transatlan- 
tique,  Paris  ** 

Sautter,  Lemonnier  et  Cie,  Paris  "^ 


E.  Buttner-Thierry,  Paris 

Blanchisserie  de  Thaon,  Vosges.  . 

Caillard  Fr^res,  Havre  ^ 

Chateau  Montrose,  M^doc  ^ 

Soci^t^  du  Finist^re,  Landerneau 

Caillette,  Paris 

Lefranc  et  Cie,  Paris  ^^ 

Piat,  Paris  ^^ 


Doguin  et  Cie,  Lyons  ^^ 

Moutier,  Paris 

Mouillot,  Marseilles  ^^ 

Ch.  Mild^,  Fils  et  Cie,  Paris 

Veuve  Pommery,  Reims 

Cusenier,  Paris 

Compagnie  de  Fives-Lille,  Fives. 

Usines  de  Mazi^res  ^* 

G.  Gounouilhou,  Bordeaux  ^^ 

Baille-Lemaire,  Paris 

Lombart,  Paris 

Mozet  et  Delalonde,  Paris  "^ 

Ph.  Roux  et  Cie.  (Tangyes),  Paris. 


Printers , 

Wines 

Insurance 

Insurance 

Chemical  products 

Printers 

Publisher 

Discount  Bank  ... 

Insurance 

Cotton  spinner , 


Retailers 

Insurance 

Stove  foundry. 


Steamers. . . , 
Electricians 


Lithographer. 
Bleachery. .  . . 
Machinists  . . . 

Vineyard 

Linen 

Mason 

Printing  inks. 
Iron  foundry . 


Lace 

Hardware 

Printer 

Electricians. 
Champagnes. . . . . 
Distiller. 

Engineers 

Metal  workers.  . . 

Printer 

Opera-glasses. 
Chocolate  works. 

Masons 

Engineers 


C.  P. 

P. 

P. 

P. 

P. 

C.  P. 

c.  p. 

c. 

p. 

Ind. 

c.  p. 

Ind.  P. 
Ind.  P. 


C. 

Ind. 

C.  P. 

C.  P. 

P. 
Ind.  P. 

C.  P. 

C.  P. 

C. 
Ind.  P. 

Ind. 

C.  P. 
Ind.  C. 

C.  P. 
Ind.  C. 

Ind.  P. 


*  Patronal  >  Percentage  on  business. 

*  CoSperation.  "  Cooperative. 

'  Gratifications  and  patronal.      »  A  percentage  on  wages. 
>o  Patronal.  «i  Patronal. 

^  Gratificationa.  ^*  PatronaL 

i<>  Committee. 


*  Committee. 
0  Premiums. 

•  No  bonus  divided. 
1*  Gratifications. 

**  Committee. 


368 


APPENDIX 
FKANCE  —  Continued. 


Date. 


1885 

1886 
1886 
1886 
1887 
1888 
1889 
1890 
1890 
1890 
1890 
1891 
1892 
1892 
1892 

1892 

1892 
1893 

1893 

1893 
1893 

1893 
1893 
1893 

1894 
1894 
1894 
1894 
1894 
1894 
1894 
1894 
1894 

1894 
1894 


Name. 


Saunier,  Paris 


Ph.  Monduit,  Paris 

F^lix,  Paris 

L.  Brifere,  Rouen 

Thuillier  Fr^res,  Paris 

Bonniot-Pouget,  Vallon,  Ard^che  ^ 

La  Fonci^re,  Paris  ^ 

Boivin,  Paris 

La  Providence,  Paris 

Mines  d'Aubigny-la-Ronce .... 

Verrerie  de  Vierzon 

Petillat,  Vichy 

L'Abeille,  Paris 

Miiller  et  Roger,  Paris  ^ 

Br^guet,  Paris 


Banque  de  depots  et  comptes- 
courants,  Paris 

Thomas  Fr^res,  Pontarlier  * 

Soci^t^  du  Tubulaire  Berlier, 
Paris 

Caisse  d'^pargne,  Reims 


Mines  de  Doiichy 

Magasins  de  la  Ville  de  Londres, 

Paris = 

Forges  de  Sedan 

La  Champagne,  Epemay  ^ 

Chemins     de     fer     ^conomiques, 

Paris^ 

Meynadier,  Marseilles  "^ 

Domaine  des  Gr^sy,  Lalande 

Burgart,  Oran,  Algeria 

Ducher,  Paris  ^ 

Gillet  et  Fils,  Lyons^ 

Peugeot  Fr^res,  Doubs  ^'^ 

Piquet  et  Cie,  Lyons 

Rivoire  et  Garret,  Lyons  ^^ 

Fauquet,  Cables,  Eure 


Raltier,  St.  Etienne Groceries. 

Gaudineau,  La  Fl^che 


Business. 


Painter  and  decora- 
tor  

Roofer 

TaUor. 

Printer, 

Roofers. 

Boot-legs 

Insurance 

Lace-maker 

Insurance. 
Colliery. 

Glass-works 

Foundry. 
Carriage  company. 

Foundry  

Instruments   of    pre- 


Banking . 
Printers. . 


Transportation. 
Savings-bank. . 


Colliery. 

Retailers. 
Metal  workers. 
Brewery 


Transportation 

Colonial  goods 

Farm 

Foundry. 

TaUor 

Dyeing  and  coloring 

Hardware 

Builders 

Pates  alimentaires . . 
Cotton-spinner 


*  Oratiflcations. 

*  Patronal. 
T  Patronal. 

10  PatroiiaL 


*  Patronal. 
6  Patronal. 
8  Patronal. 
u  Gratifications. 


'  Patronal. 
8  Patronal. 
»  Oratifiuations. 


APPENDIX 
FRANCE  —  Continued. 


369 


1894 

1894 
1894 
1894 
1894 
1894 
1894 
1894 

1894 
1895 
1895 
1895 
1895 


Kame 


Janvier,  P6re,  Fila  et  Cie,  Le 
Mans 

Soei^t^  le  Nickel,  Paris 

Grands  Moulins  de  Corbeil,  Paris. 

Le  Printemps,  Paris 

Banque  Parisienne,  Paris 

Banque  Russe  et  Frangaise,  Paris. 

Comp.  Fonci^re  de  France,  Paris. 

T^l^graphe  de  Paris  k  New  York, 
Paris 

E.  Aubert,  Bapaume-l^s-Rouen. . 

Domaine  d'Esquir^ 

Progr^s  d'Eure-et-Loir,  Chartres. 

Oerf  et  Cie,  Versailles. 

Fr^chon,  Bordeaux 

127  cooperative  distributive  stores 
give  a  bonus  to  labor. 


Business. 


Rope  walk. 
Metal  workers, 

Millers 

Retailers 

Banking 

Banking 

Bankers 

Telegraph  Co. 
Cotton-mills. . 

Farm 

Journal 

Printers 

Velocipedes. 


C. 

c. 
p. 
p. 
c. 
c.  p. 

c. 
c. 

c.  p. 
c. 
p. 


Note.  —  The  lists  of  profit-sharing  houses  published  by  the  French 
Participation  Society,  and  in  the  "  Almanac  of  French  Cooperation  " 
are  undoubtedly  too  inclusive,  as  cases  of  discontinuance  of  the  system 
are  not  noted  with  sufficient  care.  The  above  list  follows,  mainly 
that  of  M.  Vanlaer,  given  in  his  prize  essay  on  Participation  (Paris, 
A.  Rousseau,  1898).  He  marks  nine  cases  given  in  the  "Almanac" 
as  having  "cess^  de  fonctionner"  (Paris  and  Orleans  Railway ;  MM. 
Besseli^vre  (1877),  Caillard  (1880),  Gilon  (1883),  LeccBur  et  Cie  (1885), 
Comte  de  Lariboisi^re  (1886),  NayroUes  (1887),  Broquart  (1890),  and 
Deberc  (1892) ;  the  Com^die  Fran§aise  "  figures  wrongly  on  the  list ;  " 
the  Comptoir  de  I'Industrie  lini^re  (1846)  "has  never  operated;" 
and  concerning  a  number  of  the  cases  which  he  gives,  his  information 
is  marked  "  insufficient :  "  I  have  rectified  two  mistakes  in  this  list. 
In  the  foot-notes  to  the  table  above,  "  gratifications  "  and  "  patronal " 
are  M.  Vanlaer's  judgments  as  to  the  best  designation  to  apply  to 
certain  cases.  Other  cases  given  in  the  Almanac,  but  omitted  by 
M.  Vanlaer  (probably  because  profit  sharing  has  been  discontinued 
in  them),  are  the  following :  Gaget,  Perignon  et  Cie  (1872),  Cazalet 
(1887),  Badin  et  Fils  (1890),  the  Electrical  Company  (Place  Cliehy, 
Paris,  1892),  the  Sevign^  Dairy  (1894),  Boissiere  (1894),  the  Soci^t^ 
de  Mouzaia  (Algeria,  1895),  E.  Pantz  (1895),  the  estate  Fonsorbes 
(1895),  Lefebvre  (1895),  the  estate  Vernis  (1895),  the  Boulonneries 
de  Bogny-Braux  (1895),  the  General  Telephone  Company  (1895),  the 
Paris  Lighting  and  Cooking  Gas  Co.  (1895),  and  the  estate  of  Got, 
Isle  de  Reunion  (1895). 


370 


APPENDIX 
GERMANY.i 


Date. 


1847 

1872 
1874 
1874 
1885 


1894 


1866 
1873 
1875 
1895 


1866 


1847 


1896 


1854 
1869 

1870 
1872 
1872 
1872 
1873 
1875 
1874 
1886 
1888 


Alsace. 

Steinheil,  Dieterlen  and  Co.,  Ro- 
thau 

Scheurer-Kestner,  Thann 

Seheurer,  Lauth  and  Co.,  Thann. 

Sehaeff er  and  Co.  Pf  astatt 

Khin  et  Moselle,  Strasburg 

Soci^t6  Anonyme  d'  Industrie  Tex- 
tile, ci-devant  Dollfus-Mieg  et 
Cie,  Miihlhausen  '^ 

Alsatia,  Strassburg 

J.  Zuber,  Rixheim 


Bavaria. 

Morgenstem,    Forehheim 

Kaiserslautern  Foundry 

Raulino  and  Co.,  Bamberg. . . . . . 

Reiniger,    Gebbert    and     Schall 
Frlangen 


Hesse. 

Louis  of  Hesse  Railroad,  Mainz. 

Mecklenburg. 
J.  H.  Von  Thunen,  Tellow 


Mecklenbur  g:-  Schiver  in. 
W.  Gehrcke,  Schwerin 


Prussia. 

J.  Neumann,  Posegnick 

Ilsede  Foundry,  Gross-Ilsede,  Hil- 

desheim 

Berlin- Anhalt  Railway  ^ 

Siemens  and  Halske,  Berlin 

Bohm,  Brunn 

Braun  and  Bloem,  Diisseldorf . . . . 

Mendelssohn  and  Co.,  Berlin 

Boden-Kredit-Aktien  Bank, Berlin 
K.  &  T.  MoUer,  Kupferhammer  * 

J.  C.  Schmidt,  Erfurt 

H.  Freese,  Berlin 


Cotton  spinners. 
Chemicals 


Bleachers  and  dyers. 
Insurance 


Textiles. 
Insurance. 
Paper  works. 


Tinfoil 


Tobacco. 
Electricians. 


Farm 


Wood-worker. 


Farms. 


Electricians 

Farm 

Caps  and  cartridges. 
Bankers. 


Foundry. 
Bluraenschmidt. 
Venetian  blinds . , 


1  In  respect  to  other  Continental  countries  than  France,  I  have  followed  M. 
Vanlaer's  list  with  more  freedom,  as  he  is  evidently  less  informed  in  this  quar- 
ter. In  all  probability  a  number  of  cases  here  named  have  lapsed  with  time :  I 
have  not  been  able  to  take  a  satisfactory  census. 

'  Patronal.  3  Gratifications.  *  Same  dividend  on  savings  and  capitaL 


APPENDIX 

GERMANY—  Conttnuetf. 


371 


Date. 
1892 

1896 
1890 


1869 
1893 

1886 

1894 


1897 


A.  Hirsch  and  Co.,  Cassel 

Limburger,  Pf  alzhill 

M.  Roesler,  Rqdach  i.  Thiiringia 

Servais,  Altenliof 

Schulteiss  and  Co.,  Berlin  ^ 

Hallesche  Maschinenfabrik 


Co., 


Saxony. 

Q.  Adler,  Buchholz  2 

Ch.  Winckler,  Leipzig 

Saxon-Bohemian  Steamboat 
Dresden 

Th.  Ficker,  Pischwitz 

The   Royal   Statistical    Bureaus, 
Dresden. 

The  Saxon  Linen  Industry,  Frei- 
berg ^ 


Saxe-'Weimar-Eisenach. 

Carl  Zeiss,  Jena 


Federstahl. 

Farm 

Pottery. 

Farm 

Brewery . . . 
Engineers . , 


Paper  board. 
Paper 


Leather  board. 


Optical  instruments. 


Bonus. 


P. 

C. 
C.  P. 


SWITZERLAND. 


1867 
1868 
1869 
1870 
1871 
1872 
1873 

1876 

1878 
1878 

1880 
1892 

1896 


Schoeller  et  Fils,  Schaffhausen. . . 
Chessex  et  Hoessly,  Schaffhausen. 

Nyon  Pottery 

Billon  et  Isaac,  Geneva 

Steinf  els,  Zurich  * 

Reishauer  et  Bluntschli,  Zurich . . 
Comp.  gen.  de  Navigation  sur  le 

lac  Leman,  Lausanne 

Tramways  Suisses,  Geneva 

Schoetti  et  Cie,  Fehraltorf 

Fabrique  d'Appareils  Electriques, 

Neuf  chatel  ° 

Mermod  Fr^res,  Sainte-Croix .... 
Compagnie    de    I'lndustrie    Elec- 

trique,  Geneva 

Wild  Brothers,  Zurich 

Bulland,  Geneva 

Various  cooperative  stores. 


Textiles 
Textiles , 


Music  boxes . 

Soaps 

Tools 


Steamers 
Matches . 


Watches. 


Electriciana 

Printers. 

Parts  of  watches. 


P. 
P. 
C. 
C.  P. 

c. 
p. 

0. 

c. 
c.  p. 

c. 
p. 


'  Same  dividend  on  wages  and  capital.  '  Patronal. 

'  Same  dividend  as  to  stock.  *  Gratifications.  «  Gratifications. 


372 


APPENDIX 
AUSTRIA-HUNGARY. 


Date. 


1869 
1881 

1889 
1896 


Kame. 


Paper  Works,  Schlogmiihl  ^ 

Franco-Hungarian  Insurance  Co., 

Budapest 

Unio  CathoKca,  Vienna 

Kaolin  Company,  Karlsbad. 


Business. 


Paper 


Insurance . 


BELGIUM. 


1872 
1888 
1891 

1892 


Lloyds  Beige,  Antwerp 

G.  Boel,  La  Louvi^re 

De  Naeyer  and  Co.,  Willebroeck. 

Merlo-Charlier,  Etterbeek 

Maison  Tiberghien,  Ledeberg-les- 

Gand 

Vimenet 


Insurance 

Foundry 

Machinists .... 
Zinc  worker. 

Dyers. 

Felts  and  hats. 


HOLLAND. 


1880 
1883 
1887 
1887 
1888 
1891 


J.  C.  Van  Marken,  Delft 

Stearic  Candle  Factory,  Gouda. . 
Oil  and  Gelatine  Works,  Delft. . . 

Stork  Brothers,  Hengelo 

De  Gekroonde  Valk,  Amsterdam . 
Van  Marken  Press,  DeKt  ^ 
De    Veluwe,    Nunspeet,    Gelder- 
land2 


Yeast  and  spirits. 


Engineers 
Brewery. 


Varnishes 


ITALY. 


J.  Pellas,  Florence 

1873  Lanificio  Rossi,  Schio  * . 
1876  People's  Bank,  Padua.  . 
1885  i P.  Genevois  and  Son,  Naples. 
1887  ~      -  -    -     -     -- -      - 


People's  Bank,  Milan  ^ 

Dyeing    and    Finishing    Factory, 

Como. 
Pia  Azienda  Tessile,  Como. 
Guide  Galbiata  et  Cie,  Milan .... 


Printer 

Woolen-mills . 


Soaps. 


Crapes. 


*  Gratifications.  ^  Shares.  ^  CoSperation.  *  Levy  on  expenses. 

^  Nearly    all  the  People's  Banks  of  Italy  (154  in  1886,  a  number  largely  in- 
creased since)  give  their  employees  a  share  in  the  profits. 


APPENDIX 
SCANDINAVIA. 


373 


Date. 

1870 
1889 

1890 


Nama 


H.  Varingsaasen,  Aadals  Brug, 
Norway 

Wood-Pulp  Factory,  Alsfos,  Nor- 
way ^ 

Stroeraan  and  Larson,  Gothen- 
burg, Sweden 

Atlas  Wagon  Factory,  Stockholm, 
Sweden. 


Business. 


Foundry. 


Saw-mill. 


RUSSIA. 


Russian  Railways.^ 
Morokovetz  Factory,  Kharkof. 


SPAIN. 


1891 
1894 


Real  Fabrica  de  Tapices,  Madrid  ^  Tapestry . . . . 
M.  Marcet,  Tarrasa Woolen-mill. 


PORTUGAL. 


1888 


Regie  de  la  Fabrique  des  Tabacs. 


State  tobacco  works 
(now  a  private  com- 
pany). 


Note.  —  To  the  list  of  profit-sharing  firms  in  Germany  and  Austria- 
Hungary  should  be  added  the  Aplerbeck  Hiitte  in  Aplerbeck  (1898) ; 
the  Porzellanfabrik  in  Kahla  (1898) ;  the  Meehanische  Baumwoll- 
spinnerei  und  Weberei  in  Augsburg ;  the  Aktienbrauerei  Retten- 
meyer,  Stuttgart ;  the  Pfalzische  Nahmaschinenf abrik  vom  Gebr. 
Kayser,  in  Kaiserslautem  ;  the  Holzstoff-und-Papierf  abrik  zu  Schlema 
b.  Schneeberg  ;  and  the  Sachsische  Leinenindustrie  in  Freiberg.  To 
the  French  list  should  be  added  Solvay  et  Cie  (p.  153). 


1  Gratifications. 
*  Gratifications. 


3  System  of  coUective  wages. 


374 


APPENDIX 
BRITISH  EMPIRKi 


Date. 

1865 
1866 

1869 
1869 

1873 

1876 

1876 

1878 

1878 

1880 
1881 

1881 

1882 
1883 
1884 

1884 

1884 
1885 

1886 

1886 

1886 


Name. 


Jolly  &  Son,  Bath 

Fox  Brothers  &  Co.,  Wellington, 
Somerset 

Fletcher  &  Son,  Norwich 

United  Cooperative  Society,  Glas- 
gow  

Agricultural  and  Horticultural 
Association,  London 

GroodaU  &  Suddick,  Leeds 


Women's  Printing  Society,  Lon- 
don   

Sir  W.  G.  Armstrong,  Whitworth 
&  Co.,  Newcastle-on-Tyne  ^. . . . 

Cassell  &  Co.,  London. 


William  Jacks   &  Co.,  Glasgow. 
Birmingham  Coffee  House  Com- 
pany, Birmingham 

B.  &  S.  Massey,  Openshaw,  near 
Manchester 

Brooke,  Bond  &  Co.,  London 

C.  Fidler,  Reading 

A.  De  St.  Dahnas  &  Co.,  Leices- 
ter  

Perrott  &  Perrott,  London 


Blundell,  Spence  &  Co.,  Hull 

The    William    Davies    Company, 

Toronto,  Canada 

J.  W.  Arrowsmith,  Bristol 


Burroughs,  Wellcome  &  Co.,  Lon- 
don   

Earl  Grey,  Howick,  Lesbury 


Business. 


Drapers. 


Woolens . 
Printing. 


Bakers  and  caterers. 

Artificial  manure 
seeds,  etc 

Stationery  and  print- 
ing  


Printing 

Engineering  and 

shipbuilding. . . . 
Printing,    publishing 

and  bookbinding 
Iron  merchants.. . . , 


Catering  and  hotel. . . 


Engineers 

Tea  blending 

Seedsman 

Manufacturing  chem- 
ists   

Packers,  clothwork- 
ers 

Colors  and  paints.  ■ 


Pork  packers 

Printing  and  publish- 
ing  

Manufacturing  chem- 
ists  

Farming  (Lear- 
mouths  Farm) . . 


BonuB. 


C. 

c. 

C.P. 

c. 

c. 

c. 

p. 
c. 


C.P. 

c. 

0. 

c. 
c. 
c. 


*  Taken,  with  additions,  from  Mr.  D.  F.  Scliloss'  Methods  of  Industrial  Remu- 
neration (third  edition,  1898) ;  compiled  by  Mr.  Schloss,  June  30,  1897,  from  his 
Report  on  Profit  Sharing,  1894,  and  the  Labour  Gazette  for  1895-1897:  a  few 
firms  are  denoted  by  letters  only.  While  abridging  the  addresses  and  details  of  the 
business  of  the  various  firms,  I  have  kept  Mr.  Schloss'  nomenclature  in  the  fourth 
column,  which  differs  somewhat  from  my  own  in  the  other  lists.  C.r=  paid  in  cash  ; 
P.  =:  credited  to  Provident  Fund ;  S.  =  invested  in  shares  in  the  undertaking ;  C.  P. 
=  partly  paid  in  cash,  partly  credited  to  Provident  Fund  ;  C.  S.  =  partly  paid  in 
cash,  partly  invested  in  shares  in  the  undertaking  ;  P.  S.  =:  partly  credited  to  Pro- 
vident Fund,  partly  invested  in  shares  in  the  undertaking. 

i  Date  of  adoption  by  the  Whitworth  firm. 


APPENDIX 
BRITISH  EMPIRE — continued. 


376 


Date. 

1886 
1887 
1887 
1887 


1888 
1888 

1888 


1888 

1888 

1889 
1889 

1889 

1889 

1889 
1889 

1889 
1889 

1889 

1889 

1889 
1889 
1889 

1889 

1890 

1890 
1890 
1890 


Name. 


Wm.  Thomson  &  Sons,  Wood- 
house  Mills,  Huddersfield 

John  Boyd  Kinnear,  Kinloch, 
Fif  eshire 

Lord  Wantage,  Lockinge,  Wan- 
tage   

Ross  &  Duncan,  Goyan,  Glasgow. 


S.  &  E.  Collier,  Reading 

Walker,  Sons  &  Co.,  London,  and 
Colombo,  Ceylon 

Coventry  Gas  Fitting,  Electrical, 
and  Engineering  Company,  Cov- 
entry  

Binns  &  Co.,  Derby 


Thomas  Bushill  &  Sons,  Coven- 
try   

W.  Rowntree  &  Sons,  Scarborough 

J.  H.  Ladyman  &  Co.,  King's 
Lynn 

Sampson  Low,  Marston  &  Co., 
London 

Birmingham  Dairy  Co.,  Birming- 
ham   

A.  H.  Taylor,  Malton 

Western  Tanning  Company,  Bris- 
tol  

Butler  &  Tanner,  Frome 

Hele  Paper  Company,  Cullomp- 
ton,  Devon 

Robinson  Brothers,  West  Brom- 
wich  and  Knottingley 

Avalon  Leather  Board  Company, 
Street,  Somerset 

A.  B.  (in  Midlands) 

W.  D.  &  H.  O.  WiUs,  Bristol. . . . 

South  Metropolitan  Gas  Company, 
London 

Christ,  Thomas  &  Brothers,  Bris- 
tol  

Clarke,  Nickolls  &  Coombs,  Lon- 
don  

Robert  Martin,  West  Hartlepool. 

Newman  &  Son,  London 

Thomas  Hailing,  Cheltenham. . . . 


Business. 


Woolens     and    wor- 
sted   


Farming. 


Farming 

Engineering  works. . 


Bricks  and  pottery. . 
Engineering  works. . 


Com  factors,  seeds- 
men  

Manufacturing  sta- 
tioners  

Drapers 


Grocers. . . 
Publishers. 


Groceries. 
Printing  . 


Tar  distilling. 


Manufacturers. 
Tobacco 


Soaps  and  candles. . . 


Confectionery. 

Printing 

Printing 

Printing 


Bonos. 


P.S. 

C. 

C. 

C.  or 
C.  P.,  as 

employ- 
ees de- 
cide. 

c. 

C.P. 


C.P. 

c.  p. 
c. 

C.P. 

c. 

c. 

c. 
c. 

c. 

c. 

C.P. 
C.P. 
C. 

c. 
c. 

C.  and 
C.  S. 


C.P. 

c. 
c. 
c. 


376 


APPENDIX 
BRITISH  EMPIRE— continued. 


Date. 


1890 
1890 
1890 
1890 

1890 


1890 
1890 
1890 

1890 

1890 

1890 
1890 
1891 
1895 
1891 

1891 

1891 
1891 
1891 
1891 

1891 

1892 
1892 
1892 

1892 
1892 

1892 
1892 

1893 

1893 

1893 

1894 
1894 


Name. 


C.  D 

Edward  Jackson,  Reading 

E.  F 

Willans  &  Robinson,  Thames  Dit- 
ton , 

New  Zealand  Farmers'  Coopera- 
tive Association  of  Canterbury, 
Christchurch,  New  Zealand 

Osborne  &  Young,  London 

W.  &  J.  Mackay  &  Co.,  Chatham 

East  Anglian  Fruit  Preserving 
Company,  King's  Lynn 

Marquis  of  Hertford,  Ragley, 
Warwickshire 

H.  D.  and  B.  Headley,  Ashford, 
Kent 

Idris  &  Co.,  London,  N.  W 

William  Terrell  &  Sons,  Bristol.. 

Hon.  T.  A.  Brassey,  Battle,  Sus- 
sex   

William  Lawrence  &  Co.,  Not- 
tingham   

J.  D.  Cartwright  &  Co.,  Cape 
Town,  South  Africa 

Thomas  Brakell,  Liverpool 

Franklyn,  Davey  &  Co.,  Bristol.  . 

G.  H 

T.  S.  Simms  &  Co.,  St.  John,  New 
Brunswick - 

Women's  Work  Association,  Chel- 
tenharai 

John  Devereux  &  Son,  Lowestoft 

Unwin  Brothers,  London 

Coombs'  "  Eureka  "  Aerated  Flour 
Company,  Nottingham 

J.K 

L.  M 


James  Johnston,  Stirling 

Clement  Dalley  &  Co.,  Kidder- 
minster  

Brownfield's  Guild-Pottery  Soci- 
ety, Cobridge 

Brush  Electrical  Engineering 
Company,  London 

Jesse  Mundell,  Middlesbrough . . . 

Clark's  Bread  Company,  Brighton 

Guy's  Hospital  Trained  Nurses' 
Institution,  London 


Business. 


TaUor. 


Engine  building  .... 

Wool  and  grain  mer- 
chants, general 
merchandise .... 

Corn  and  flour .... 

Printers 


Farming  (seven 
farms) 


Printing 

Mineral  waters  . .  - . . 
Wire  and  hemp  rope 
Farming  (two  farms). 


Cabinet-making. 


Provision  merchants. 

Printing 

Tobacco 

Woolen  manufacture 

Brushes  and  brooms 

Embroidery,  etc. 

Grocers 

Printers 


Manufacturers 

Supply  and  manufac- 
ture   

Wood  merchant 


Com  merchants- 


House  painter. 


Bonus. 


C. 

c. 

C.  P. 

c. 

C.  and 

c.s. 

c. 

c. 
c. 
c. 
c. 

C.P. 


c. 
c. 

c. 
c. 

c. 
c. 

c. 

P.S. 
C.P. 

c. 
c. 


APPENDIX 
BRITISH  EMPIRE  — connViMcrf. 


377 


Date. 


1894 

1894 
1895 
1895 

1896 

1896 
1896 


1896 
1897 

1897 
1897 
1898 
1898 

1899 


Name. 


Crystal  Palace  District  Gas  Com 
pany,  London 

N.  O. 

Edwin  Broad,  Redruth 

Butterwirth  and  Hunter,  Liver- 
pool  

Kensing-ton  Cooperative  Stores, 
London  

J.  T,  and  J.  Taylor,  Batley 

The  Minor  Industries  Profit-shar- 
ing Association,  Bridgetown, 
Barbadoes,  W.  I 

Pearson  and  Rutter,  Liverpool . 

Herbert  Hutchinson,  Haslemere, 
Surrey 

Richmond  &  Co.,  Warrington . . . 

William  Latimer,  Carlisle 

Britannia  Works  Co 

Meath  Home  Industries  Associa- 
tion, Randlestown,  Nevan 

John  E.  Nelson,  Sunderland 

376  distributive  and  productive  co- 
operative societies.     See  p.  345. 


Business. 


Woolens. 
Draper . . 


Provision  merchants 


Dressmaking. 
Woolens 


Agriculture  (sale  and 

purchase) 

Provision  merchants . 

Architect  and  builder 

Gas  engineers 

Joiner 

Photographic  mf  rs. . . 


Slater. 


Bonus. 


C.  S. 
and  C. 
C. 
C. 

C. 

P. 

s. 

C.  and 
Pro- 
duce. 
C. 

C.  P. 
C.S. 
C. 
C. 

C. 
C. 


UNITED  STATES  OF  AMERICA. 


Date. 


1878 
1872 

1879 
1881 
1882 

1885 
1886 
1886 
1886 

1887 


Name. 


Peace  Dale  (R.  L)  Mfg.  Co 

The  Riverside  Press,  Cambridge, 
IVIass.^ 

Rand,  McNally  &  Co.,  Chicago  2. . 

Century  Company,  New  York^. . 

Pillsbury  Flour  Mills,  Minneapo- 
lis  

Columbus  (Ohio)  Gas  Company*. 

H.  K.    Porter  &  Co.,  Pittsburgh 

N.  0.  Nelson  Mfg.  Co 

Rumf  ord  Chemical  Works,  Provi- 
dence, R.  I 

Rice  and  Grifi&n  Mfg.  Co.,  Worces- 
ter  


Business. 


Woolens . 


Publishers. 
Publishers . 


Light  locomotives. 
Brass  goods 


Mouldings . 


1  Extra  interest  on  savings. 
*  Dividend  on  part  of  stock. 


2  Stock  dividend  to  chief  employees. 
*  Same  dividend  as  to  stockliolder. 


378  APPENDIX 

UNITED  STATES  OF  AMEBICX  —  continued. 


Date. 

Name. 

Business. 

Bonus. 

1887 

Procter  and  Gamble  Co.,  Cincin- 
nati  

c 

1889 

Bourne  Mills,  Fall  River 

P.  N.  Kuss,  San  Francisco 

Public  Ledger,  Philadelphia.^ 
Solvay     Process     Co.,     Syracuse, 
N.  Y 

Cottons 

c. 

1890 

Painter 

C  P 

1890 

Soda  ash. 
Flour-mills 

1892 

Ballard  and  Ballard  Co.,  Louis- 
ville, Ky 

c 

1895 

Acme  Sucker  Rod  Co.,  Toledo,  0. 
Broadway    Central    Hotel,    New 

York.2 
The  Hub  Clothing  Store,  Chicago 
The  Roycroft  Press,  East  Aurora, 

N.  Y. 
South    Carolina    Savings     Bank, 

Baker  Mfg.  Co.,  E vans ville.  Wis. . 
Columbus   (Ohio)  Traction  Com- 
pany.^ 

c. 

1897 

c. 

1898 

Windmills 

c. 

1899 

*  Bonus  to  chief  employees. 


1  Extra  wages,  etc. 

*  Same  dividend  as  to  stockholders. 


Note.  —  There  are  usually  "  reformers  before  the  Reformation," 
and  discoverers  of  America  before  Columbus  who  would,  in  all  proba- 
bility, have  remained  as  unknown  even  to  the  curious,  as  they  have 
certainly  been  strangers  to  fame,  had  it  not  been  for  their  greater 
and  more  courageous  successors.  When,  moreover,  the  sole  testimony 
as  to  the  reform  or  the  discovery  comes  from  the  person  himself  and 
cannot  be  authenticated  now,  his  claims  to  distinction  must  be  rated 
very  low.  Thus  Lord  Wallscourt,  a  British  nobleman,  stated  in  1846 
that  he  had  "  tried  the  plan,"  on  an  Irish  farm  of  one  hundred  acres, 
"for  seventeen  years,  and  [I]  have  found  it  to  answer  much  beyond 
my  hopes,  inasmuch  as  it  completely  identifies  the  workmen  with  the 
success  of  the  farm,  besides  giving  me  full  liberty  to  travel  on  the 
Continent  for  a  year  at  a  time,  and  upon  my  return  I  have  always 
found  that  the  farm  had  prospered  more  than  when  I  was  present." 
The  "  plan  "  in  question  was  "  to  reckon  every  workman  as  the  in- 
vestor of  as  much  capital  as  will  yield  at  five  per  cent,  per  annum  the 
sum  paid  to  him  in  wages."  Explanation  of  the  noble  lord's  meaning, 
and  further  details,  such  as  the  length  of  the  experiment,  and  the 
number  of  bonuses  paid,  are  lacking.     The  plan,  whatever  it  was, 


APPENDIX  379 

apparently  died  with  Lord  Wallscourt,  in  1849.  When  one  considers 
the  meagreness  of  this  testimony,  and  the  laxity  with  which  the  term 
"  profit  sharing  "  is  used  even  now,  fifty  years  later,  by  many  persons, 
it  must  seem  sufficient  to  record  these  facts,  leaving  the  laurels  of  M. 
Leclaire  as  "  the  father  of  profit  sharing  "  quite  undisturbed.  I^ord 
Wallscourt's  statement  was  printed  in  a  "  Treatise  on  the  Steam  En- 
gine," published  in  1846  by  the  Artizans'  Club,  and  edited  by  John 
Bourne,  but  now  inaccessible,  apparently.  Such  good  authorities  as 
Mr.  W.  Pare  in  his  "  Cooperative  Agriculture  "  (p.  122)  and  Mr.  E.  T. 
Craig  in  his  "  History  of  Ralahine  "  declare  that  Lord  Wallscourt 
"  first  conceived  the  idea  of  adopting  profit  sharing  on  paying  a  visit 
to  the  Ralahine  farm ; "  this  would  fix  the  earliest  date  for  his  expe- 
riment as  1831,  or,  more  probably,  1832  —  showing  an  error  of  three 
years  in  his  own  computation.  Neither  the  Vandela«r  experiment 
(1831),  nor  the  experiment  made  at  Assington  Hall,  Suffolk,  by  Mr. 
John  Gurdon,  had  any  profit  sharing  about  it ;  "  in  neither  instance 
were  the  laborers  the  employees  of  the  land-owner ;  the  cooperative 
association,  to  which,  in  each  case,  the  land  was  let,  cultivated  it  on 
its  own  account"  (Schloss).  If  Mr.  Sedley  Taylor  could  dwell  on 
Ralahine  as  an  example  of  participation,  in  1881  (in  a  paper  quoted 
in  his  "  Profit  Sharing,"  Essay  V.,  Appendix),  one  may  be  pardoned  for 
skepticism  as  to  Lord  Wallscourt's  plan  being  any  more  such  an  ex- 
ample. It  bears  a  suspicious  resemblance  to  the  trial  of  profit  shar- 
ing said  to  have  been  made  by  the  distinguished  American  statesman, 
Albert  Gallatin,  in  his  glass  works  at  New  Geneva,  Penn.,  estab- 
lished in  1794.  The  one  authority  here  (Professor  R.  E.  Thompson, 
in  his  "  Political  Economy,"  1882,  p.  138)  cannot  recall  the  source 
for  his  statement.  A  patriotic  American  might,  nevertheless,  be  jus- 
tified in  claiming  precedence  for  Gallatin  over  the  Lord  Wallscourt 
whom  Mr.  Schloss  declares  to  have  adopted  profit  sharing  many  years 
before  Leclaire  ("Report,"  p.  161).  Both  alleged  instances  should, 
properly,  be  ruled  out  of  court,  as  resting  on  insufficient  evidence. 


APPENDIX  III 

CASES   OF  ABANDONMENT    OF   PROFIT   SHARING  IN   THE 
UNITED   STATES 

In  "  Profit  Sharing  between  Employer  and  Employee,"  published  in 
March,  1889, 1  devoted  some  fifteen  pages  (345-360)  of  chapter  viii. 
on  "  Past  Profit  Sharing,"  to  American  instances  of  abandonment  of 
the  scheme  after  a  longer  or  shorter  trial.  The  general  table  in 
■which  these  thirteen  instances  were  included  was  entitled  a  table,  not 
oi  failures,  but  simply  of  "  cases  in  which  profit  sharing  has  been 
tried  and  is  not  now  in  force."  In  some  of  these  cases,  like  that  of 
A.  S.  Cameron  &  Co.,  makers  of  steam-pumps,  and  Lewis  H.  Wil- 
liams, builder,  an  entirely  successful  scheme  was  terminated  by  the 
death  of  the  employer ;  "  a  New  England  factory  "  (p.  346)  found  the 
results  satisfactory  so  far  as  the  employees  were  concerned,  but,  after 
paying  four  dividends,  no  bonus  was  earned.  In  another  case  (the  Bos- 
ton "  Herald,"  p.  360),  circumstances  were  very  unfavorable,  and  but 
one  bonus  was  at  length  paid  before  discontinuance.  Norton  Brothers, 
of  Chicago  (p.  353)  extended  their  system  from  a  portion  to  all  of 
their  two  hundred  and  fifty  employees  for  one  year  only.  The  New 
England  Granite  Works  (p.  353)  did  not  hold  to  its  plan  for  even  one 
year.  The  Lister  Bros.,  of  Newark  (p.  352),  divided  one  bonus  and 
had  none  the  second  year,  and  so  discontinued  the  scheme.  Troubles 
with  trade-unions,  having  no  connection  with  profit  sharing,  brought 
about  strikes  in  the  noted  Brewster  case  (after  two  years),  with  the 
Union  Mining  Company  (after  one  year),  and  with  Welshans  and  Mac- 
Ewan  (p.  357),  plumbers  (after  one  year).  Another  firm,  the  Sperry 
Manufacturing  Company  (carriage  hardware) ,  is  said  to  have  practiced 
profit  sharing  for  two  years,  1886-87,  but  to  have  "  realized  no  per- 
ceptible benefit ;  "  all  details  as  to  bonus  paid  and  methods  pursued 
are  lacking.  The  "  Massachusetts  Mercantile  Firm  "  (p.  359),  which 
"  experimented  with  profit  sharing  "  rather  unsystematically  for  some 
twenty  years,  "with  several  cessations  of  dividends,"  and  the  Bay 
State  Shoe  and  Leather  Company  (p.  359),  which  divided  six  bonuses 
in  the  seven  years  beginning  with  1867,  are  instances  of  far  more 
pith  and  moment.  If  time  and  patience  and  education  are  needed  to 
give  profit  sharing  a  reasonable  and  fair  trial,  it  is  plain  that,  inter- 
esting as  these  facts  of  record  are,  but  a  small  number  of  the  cases, 
thus  brought  together,  simply  under  the  common  rubric  "  ceased  to 


APPENDIX  381 

be,"  have  much  enlightenment  for  us  as  respects  the  merits  or  de- 
merits of  this  modification  of  the  wages  system. 

If  it  would  be  illogical  to  set  aU  these  thirteen  cases  down  as 
instances  of  "  failure,"  stUl  more  illogical  in  several  respects  is  the 
statistical  method  pursued  by  Mr.  Paul  Monroe  in  his  paper  in  the 
"  American  Journal  of  Sociology "  (May,  189(5).  Under  the  proper 
caption^  "  Cases  in  which  Profit  Sharing  has  been  Abandoned,"  he 
summarizes  briefly  the  foregoing  thirteen  instances  and  adds  twenty 
cases  more  of  a  later  date  than  1889.  Of  these  twenty  instances  I 
mentioned  fifteen  in  the  chapter  on  American  eases  actually  in  opera- 
tion when  I  wrote  :  one  case  (Keene  Brothers,  p.  317)  I  should,  prob- 
ably, have  included  in  the  table  of  past  instances.  Mr.  Monroe  states 
that  one  or  two  divisions  (of  certificates  payable  after  five  years)  were 
made  after  1885,  the  year  in  which  the  plan  was  adopted  by  Keene 
Brothers,  "  but  the  personnel  of  the  firm  was  changed  and  the  plan 
was  abandoned.  It  had  not  prevented  labor  disturbances  during  the 
years  that  the  dividends  were  paid."  Mr.  Monroe's  last  instance  is 
the  Toledo,  Ann  Arbor  and  North  Michigan  R.  R.  Company's  scheme 
of  1887,  which  I  noted  at  the  end  of  the  chapter  on  American  cases, 
but  did  not  include  in  the  table  of  "  cases  in  which  profit  sharing  is 
now  in  operation "  (pp.  382  ff.).  As  this  railway  was  in  process  of 
construction  in  1887,  was  not  likely  to  pay  any  large  dividends,  and 
has,  in  fact,  paid  none  to  this  time,  its  inclusion  in  any  list  of  cases  of 
"  abandonment "  is  somewhat  surprising.  Its  only  importance  is  due 
to  its  statement  of  the  right  of  an  employee  to  a  dividend  —  a  "  right  " 
very  easily  conceded  under  the  circumstances. 

A  critical  examination  of  Mr.  Monroe's  other  new  cases,  eighteen  in 
number,  shows  that  in  four  cases  the  results  were  satisfactory  to  the 
employers,  but  profit  sharing  was  abandoned  because  of  a  change  in 
the  ownership  of  the  business.  These  four  instances  were  E.  R.  Hull 
&  Co.,  clothiers,  of  Cleveland,  0.  (four  bonuses  paid  in  1886-89) ;  the 
Wardwell  Needle  Company,  of  Lakeport,  N.  H.,  with  the  same  length 
of  trial ;  the  Crump  Label  Company,  of  Montclair,  N.  J.,  which  made 
one  distribution  of  twenty  per  cent,  of  the  profits  in  1887  ;  and  the 
Woodstock  (Norriton  ?)  Mills  Company,  Norristown,  Pa.,  which  paid 
one  bonus,  at  least,  in  January,  1888.  Of  Mr.  Monroe's  cases  fourteen 
then  remain ;  of  these  one  was  an  instance  of  but  one  year's  trial. 
This  was  the  Watertown  (N.  Y.)  Steam  Engine  Company,  which 
paid  a  dividend  in  1891,  but  did  not  continue  the  experiment  though 
"  quite  willing  to  believe  "  that  the  men  would  have  been  educated  in 
time  to  do  much  better  than  the  majority  did.  Even  shorter  trials, 
of  six  months'  duration  only,  were  made  by  the  Malvern  (Ark.)  Lum- 
ber Company  (1894),  and  Heywood  &  Co.,  shirt  manufacturers  (1895). 
In  the  former  case  "  ninety-five  per  cent,  of  the  labor  employed  is  of 
the  lowest  unskilled  labor,  chiefly  colored.     A  very  large  proportion 


382  APPENDIX 

could  not  read  nor  write,  and  this  ignorance  prevented  any  geneml 
understanding  of  the  plan.  One  dividend  was  paid,  and  the  proposi- 
tion, explained  so  thoroughly  six  months  before,  had  to  be  discussed 
all  over  again.  The  men  thought  they  were  being  discharged  and 
paid  off.  These  considerations  [including  '  lack  of  permanency  'J  led 
to  the  abandonment  of  the  plan,  though  the  firm  expected  no  results 
until  after  the  payment  of  at  least  one  dividend.     They  attribute  the 

ilure  to  the  character  of  the  employees  and  the  industry,  not  to  any 
defect  in  the  system."  Heywood  &  Co.,  employing  chiefly  women, 
report  that  they  secured  good  results  for  a  few  weeks  only,  by  the 
promise  of  a  bonus ;  "  carelessness,  inattention,  idleness  and  irregu- 
larity returned  as  of  old."  Another  instance  of  impatience  for  results 
is  that  of  Siegel,  Cooper  &  Co.,  of  Chicago,  who  adopted  a  plan  in 
1892  modeled  after  the  Bon  March^,  but  soon  abandoned  it.  The 
Wright  and  Potter  Printing  Company,  of  Boston,  Mass.,  tried  for  two 
years  a  plan  of  dividing  a  fixed  percentage  of  profits  among  the 
deserving  men  of  their  force  of  one  hundred  and  fifty  ;  results  not 
being  satisfactory,  the  company  now  restricts  the  distribution  to  fore- 
men and  heads  of  departments. 

If  we  fix,  as  we  may  well  do,  upon  a  term  of  three  years  as  the 
shortest  period  for  which  a  trial  of  profit  sharing  should  continue  in 
order  to  give  any  considerable  instruction  as  to  the  strength  or  weak- 
ness of  the  system,  we  have  left  in  Mr.  Monroe's  list  nine  instances  of 
abandonment  of  profit  sharing  in  1889  or  subsequently  as  Important 
to  consider ;  these  are  all  cases  mentioned  by  me  as  in  operation.  Of 
these,  when  discontinued,  five  had  continued  for  three  years,  one  foj^-- 
four  (?),  one  for  five,  one  for  six,  and  one  for  seven  years.  The 
Springfield  (Mass.)  Foundry  Company  (1887-89),  after  paying  three 
bonuses  on  wages  amounting  to  two  or  three  per  cent.,  write  i-'Uii. 
our  business  it  was  an  injury  rather  than  a  benefit  to  us.  W&  could 
not  see  any  perceptible  increase  in  the  production  of  our  men,jior 
interest  in  the  care  of  their  tools  or  material.  On  the  contrary,  our 
employees  began  to  think  that  they  were  the  proper  parties^to  fix 
wages  and  the  prices  at  which  we  should  sell  the  products.  The 
employees  were  also  careful  to  take  advantage  of  their  membership  in 
the  labor  unions  to  enforce  their  demands.  Since  we  have  aban- 
doned the  system  of  profit  sharing,  these  troubles  do  not  exist^l'  As 
in  this  case  the  system  was  introduced  at  the  instigation  of  Mr.  E.  W. 
Seeger,  the  treasurer,  a  decided  believer  in  the  plan,  whose  comments 
were  of  a  very  different  tone  in  1888,  and  Mr.  Seeger  died  in  1889, 
one  naturally  infers  that  the  system  was  not  after  his  death  in  the 
hands  of  those  who  believed  in  it. 

The  Haines,  Jones  and  Cadbury  Company,  of  Philadelphia,  Pa., 
being  in  the  same  business  as  the  N.  O.  Nelson  Company,  naturally 
adopted  a  similar  system.    The  experience  of  the  first  two  yearsi 


APPENDIX 

1887-88,  was  reported  as  "  satisfactory  to  all  concerned."  After 
three  years'  further  trial,  and  dividing  some  $30,000  in  all,  the  firm  ^^-^ 
restricted  the  division  to  twenty  of  the  "  chief  men  and  women :  " 
this  restricted  profit  sharing^,  Mr.  Haines  thinks,  "  is  all  right^but  a 
general  profit  sharing,  while  in  theory  jast,  is  itt  practice  simply 
throwing  money  away."  They  are  quite  sure  thai  tJiwir  prnfila_were 
reduced  by  theaysteHaJ  — 

The  Hoffman  and  Billings  Company,  of  Milwaukee  (Wis.),  make 
of  plumbers'  supplies,  report  that  profit  sharing  worked  well  for  several 
years,  when  there  were  profits  to  divide,  "  but  when  we  happened  to 
have  a  poor  year,  and  losses  instead  of  gains  at  the  end  of  the  year,  we 
met  sour  faces  all  around  among  our  men,  and  concluded  that  it  was 
*  too  much  of  a  jug-handle  affair  '  to  be  continued,  so  we  dropped  it. 
Any  company  would,  of  course,  have  a  right  to  expect  some  benefit 
when  dividing  gains  with  employees.  We  found  out  after  profit 
sharing  for  about  three  years  that  ours  was  a  mistaken  idea,  and  con- 
cluded to  drop  it." 

The  Globe  Tobacco  Company,  of  Detroit,  Mich.,  practiced  d 
1886-88  the  unusual  plan  of  handing  over  to  the  district  board  of  the 
Knights  of  Labor  one  per  cent,  of  its  gross  receipts  (about  ten  per 
cent,  on  wages),  for  the  benefit  of  its  employees.  A  letter  from  the  firm 
reported,  early  in  1889  ("Profit  Sharing,"  p.  323),  that  "  everybody 
concerned  is  satisfied  with  this  unusual  method."  Mr.  Monroe  states 
that  the  plan  was  discontinued,  "  as  having  no  satisfactory  results." 
This  conflict  of  testimony  seems  to  throw  doubt  upon  the  propriety  of 
classing  this  case  as  one  of  "  failure,"  as  it  is  one  and  the  same  period 
of  three  years  which  is  judged  so  differently. 

Mr.  W.  Eliot  Fette,  of  Boston,  the  agent  of  a  small  gas  company, 
introduced  the  plan  of  paying  the  employees  a  percentage  on  the 
stockholders'  dividend  in  1886.  Two  years  later  he  saw  "  no  reason 
to  regret  the  adoption  of  the  plan  or  to  give  it  up,"  but  was  about  to 
introduce  it  into  two  other  companies  of  which  he  had  the  manage^ 
ment.  Mr.  Monroe  reports,  however,^  that  the  plan  was  given  up-not 
only  "  because  of  failure  of  dividends  in  recentjears/'  but  also  be- 
cause of  "  lack  of  appreciation  on  the  part  of  the  men  ; "  probably 
the  first  difficulty  had  much  to  do  in  prodfldng  the"8econd. 

Rogers,  Peet  &  Co.,  clothing  manufacturers.  New  York,  adopte 
liberal  system  of  participation  in  1886  which  gave  a  bonus  even  to 
those  who  had  done  but  a  week's  work.     "  Profit  Sharing  "  (pp.  313— 
314)  gives  the  three  dividends  paid  as  over  three  per  cent.  each. 

*  This  case  may  be  considered  one  where  profit  sharing  still  obtains  even  accord- 
ing to  Mr.  Schloss,  who  makes  no  attempt  "  to  draw  a  hard  and  fast  line  ...  as  to 
the  irreducible  minimum  proportion  of  tlie  total  number  of  employees  who  must 
participate  in  order  to  constitute  a  case  of  profit  sharing."  —  Methods  of  Indus- 
trial  Remuneration,  p.  247  n. 


384  APPENDIX 

"  Towards  the  close  of  the  third  year  our  cutters,  who  were  the  only 
mechanics  employed  in  the  husiness,  went  on  a  strike  over  a  rather 
insignificant  matter,  to  settle  which  we  had  to  call  in  the  authorities 
of  their  trade-union.  Our  position  was  maintained  by  the  arbitra- 
tors, and  the  men  went  back  to  work,  but  we  felt  that  our  liberality 
towards  them  was  not  appreciated,  and  the  next  year  we  discontinued 
the  profit-sharing  arrangement.  We  have  always  felt  that  we  made  a 
mistake  in  admitting  all  our  employees  to  this  participation  on  the 
same  basis ;  whereas,  had  we  limited  the  dividend  shares  to  those  who 
had  been  in  our  service  a  term  of  years,  the  plan  would  have  worked 
better  all  round." 

The  Bucyrus  Steam  Shovel  and  Dredge  Company,  of  South  Milwau- 
kee, Wis.  (formerly  of  Bucyrus,  Ohio),  paid  a  bonus  of  twenty-five  per 
cent,  on  its  net  profits  for  1886,  and  in  1887  made  it  indefinite.  Em- 
ployees combining  against  the  company  were  to  forfeit  their  bonus. 
After  a  few  years  the  plan  was  abandoned  "  as  having  few  advan- 
tages ;  "  the  experience  of  the  first  two  years  had  been  favorable. 

The  St.  Louis  (Mo.)  Shovel  Company  also  reported  entire  satisfac- 
tion after  two  years'  trial  of  a  profit-sharing  plan  borrowed  from  the 
N.  0.  Nelson  Company  in  1887.  They  had  had  much  trouble  with 
the  men,  resulting  in  numerous  strikes.  In  1896  they  gave  their 
opinion  that  the  system  decreases  the  profits  of  the  firm,  and  reported 
their  experience  with  a  trade-union.  "  So  long  as  labor  unions 
dominate  labor,  profit  sharing  cannot  be  a  success  nor  prevent  labor 
troubles,  even  though  employers  conscientiously  and  liberally  endeavor 
to  work  under  the  system.  We  had  conducted  our  business  on  this 
plan  for  several  years,  paying  dividends  regularly,  submitting  books 
to  inspection  of  any  committee  the  employees  should  so  select,  making 
dividends  every  year  with  one  exception,  and  on  two  or  three  occasions 
where  honesty  to  ourselves  did  not  justify  it.  The  union  was  estab- 
lished in  the  shop  during  the  Pullman  troubles,  and  the  men  de- 
manded that  we  be  made  a  union  shop,  that  they  appoint  the  fore- 
man, which  we  regard  a  necessary  power  to  retain  in  the  hands  of  the 
management  for  obvious  reasons.  They  demanded  that  union  labels 
be  put  upon  our  goods,  to  which  merchants  would  seriously  object, 
and  this  when  no  existing  trouble  outside  the  works  was  evident.  We 
decided  that  we  could  not  afford  to  have  the  business  taken  out  of  our 
hands,  although  a  minority  of  the  employees  only  made  the  demand, 
but  they  were  backed  by  the  labor  organizations.  Our  works  were 
picketed  by  union  men  to  prevent  employment  of  other  than  union 
men.  We  thereupon  closed  down  for  several  weeks  and  discontinued 
the  profit-sharing  system." 

The  Ara  Cushman  Company,  of  Auburn,  Maine,  manufacturing 
boots  and  shoes  on  a  large  scale,  practiced  profit  sharing  for  six  years 
from  March,  1886.     Mr.  Cushman,  who   rose  from  the  workman's 


APPENDIX  ,  385 

bench,  was  thoroughly  in  earnest ;  he  understood  the  necessity  for 
patience  and  education,  and  set  out  intending  to  give  the  plan  a  long 
trial.  He  pointed  out  to  his  employees,  as  occasion  offered,  the  ways 
in  which  they  could  make  the  system  a  success,  and  he  seems  in  all 
respects  to  have  fulfilled  his  part  of  the  contract  with  zeal  and  sincer- 
ity. Unfortunately,  the  Knights  of  Labor  were  very  active  and  pow- 
erful from  1886  on,  and  did  much  in  Auburn,  as  elsewhere,  to  foment 
bad  feeling  between  the  employer  and  the  employee.  Mr.  Cushman'a 
account  of  the  reasons  for  abandoning  his  scheme,  as  given  to  Mr. 
Monroe,  is  very  instructive :  (Mr.  Monroe  exaggerates  greatly,  how- 
ever, in  saying  that  the  experience  of  this  firm  "  may  be  taken  as 
typical  of  many  others,"  if  he  means  many  other  profit-sharing  firms ; 
while  hostility  to  the  plan  of  a  more  or  less  pronounced  character  has 
been  shown  by  trade-unions,  it  is  not  the  fact  that  "  many  "  profit- 
sharing  firms  have  been  antagonized  by  the  unions  in  this  degree.) 
Mr.  Cushman  says  :  — 

"  When  first  presented,  our  proposition  for  profit  sharing  was  re- 
ceived by  most  of  our  employees  with  favor,  by  many  of  them  with 
enthusiasm,  and  for  the  first  year  or  two  many  of  them  appeared  to 
try  to  make  their  work  of  such  value  to  the  company  as  would  fairly 
entitle  them  to  a  dividend  in  pursuance  of  our  agreement  and  purpose. 
A  comparatively  small  number  maintained  their  interest  to  the  last 
and  witnessed  the  discontinuance  of  the  scheme  with  much  regret. 

"Among  the  prominent  causes  of  abandonment  I  will  mention: 
The  inadequate  ideas  of  most  of  the  employees  in  regard  to  the  ex- 
acting demands  of  business,  which  led  them  to  think  that  the  profits 
of  business  were  larger  and  more  easily  earned  than  they  are ;  the 
failure  on  the  part  of  most  of  them  to  realize  that  success  of  the  busi- 
ness such  as  would  assure  them  a  dividend  above  fairly  liberal  wages 
must  depend  on  the  individual  efforts  of  all ;  many  of  them  could  see 
it  to  be  the  duty  of  the  others  to  be  faithful  and  diligent,  but  did  not 
give  it  a  personal  application.  But  altogether  the  most  important 
reason  why  we  could  not  make  our  plan  successful  was  the  opposition, 
open  or  concealed,  of  the  labor  organizations  under  the  control  of 
professional  agitators  and  leaders.  Their  purpose  was  to  make  work- 
ingmen  believe  that  their  interests  were  safer  and  would  be  better 
subserved  under  the  control  of  their  organizations  than  in  cooperation 
with  employers  of  labor ;  that  wages  could  be  increased  or  main- 
tained more  certainly  and  to  a  greater  extent  by  the  arbitrary  demands 
of  labor  organizations  than  by  any  alliance  with  employers,  with'  the 
hope  of  a  fair  share  of  the  profits.  It  was  difficult,  and~became  al- 
most impossible,  to  adjust  prices  for  work  with  our  employees  which 
were  satisfactory  to  them  and  possible  for  us  to  pay,  the  men  being 
constantly  told,  and  many  of  them  made  to  believe,  that  it  was  our 
purpose  to  make  prices  fully  as  much  lower  than  other  manufacturers 


386  APPENDIX 

as  we  would  ever  pay  in  dividends.  The  time  consumed  by  the  com- 
mittee in  adjusting  prices  and  settling  questions  which  were  constantly 
coming  up  came  to  be  quite  an  annoyance  as  well  as  an  expense  ;  the 
men  in  most  instances  being  so  jealous  of  their  supposed  rights  that 
they  resisted  many  necessary  and  reasonable  requirements  from  the 
company,  while  making  many  unreasonable  and  impossible  claims  for 
themselves.  Altogether  we  felt  compelled,  much  to  our  disappoint- 
ment and  regret,  to  discontinue  the  plan. 

"  In  conclusion  I  will  venture  to  express  the  opinion,  that  before 
any  system  of  industrial  partnership  or  profit  sharing  possible  to 
manufacturers,  and  hence  practical  and  permanent,  can  be  introduced, 
there  must  be  more,  and  to  a  very  great  extent  radically  different, 
fundamental  teaching  on  the  part  of  labor  leaders  and  so-called  labor 
and  social  reformers.  As  I  read  and  observe,  I  think  workingmen 
hear  much  indiscriminate  denunciation  of  the  alleged  selfishness,  in- 
justice and  heartlessness  of  employers  of  labor,  and  but  very  little,  if 
indeed  anything,  in  the  way  of  admonition  or  advice  to  themselves  to 
do  faithful,  intelligent  and  efficient  work,  and  in  that  way  to  com- 
mand desirable  positions  and  adequate  pay.  In  the  teaching  of  pro- 
fessed friends  of  labor  much  needs  to  be  done  first  to  disabuse  the 
minds  of  workingmen  of  the  prevalent  idea  that  their  employers  are 
necessarily  either  their  enemies,  or  entirely  disregard  their  interests, 
and  that  everybody  who  has  accumulated  large  wealth  must  have 
done  it  dishonestly  and  to  the  detriment  or  impoverishment  of  some- 
body else.  When  the  '  New  Day  '  of  the  '  Industrial  Millennium,'  of 
which  reformers  speak  and  write,  is  fully  established,  it  will  have 
been  brought  about  fully  as  much  by  the  increased  intelligence,  indus- 
try, faithfulness  and  economy  of  wage-earners  as  by  the  increased 
liberality  of  wage-payers.  If  each  would  study  more  the  common 
interests  of  both,  we  should  be  nearer  the  dawn  of  better  conditions." 

From  this  careful  review  of  Mr.  Monroe's  list  of  cases  of  abandon- 
ment, one  may  see  how  misleading  were  the  newspaper  paragraphs 
founded  upon  it  to  the  effect  that,  in  two  cases  out  of  three  in  the 
United  States,  profit  sharing  has  proved  a  failure.  For  this  misap- 
prehension Mr.  Monroe  was  largely  responsible,  since  in  the  "  sum- 
mary "  at  the  end  of  his  article,  he  says :  "  Of  the  fifty  firms  which 
have  adopted  the  system,  twelve  continue  it,  five  have  abandoned  it 
indefinitely,  and  thirty-three  have  abandoned  it  permanently.  .  .  . 
The  third  class  vary,  in  length  of  trial,  from  a  maximum  of  eight 
years  to  a  minimum  of  six  months ;  the  majority  having  tried  it  for  a 
period  of  from  two  to  three  years."  As  the  maximum  instance  was 
"  a  success  in  every  respect,"  and  the  two  or  three  instances  of  six 
months'  duration  deserve  no  serious  mention,  Mr.  Monroe's  inferences 
from  his  statistics  must  be  pronounced  more  curious  than  important. 
Despite  his  remarks  that  "  in  comparison  with  European  experience, 


APPENDIX  387 

one  is  stmck  with  the  brevity  of  the  trial  [in  the  third  class  of  aban- 
doned cases  ?  ]  ;  "  and  that  "  it  is  true,  with  any  such  question,  that 
one  success  will  prove  that  it  can  be  done  with  profit  and  any  number 
of  failures  not  prove  the  contrary,"  I  cannot  regard  his  conclusions  as 
justified  by  his  presentation  of  the  facts,  critically  examined.  For  he 
proceeds  to  say :  "  Yet  it  is  as  a  general  type,  not  an  individual  varia- 
tion, that  such  a  system  has  social  significance.  ...  A  further  study 
will  justify  two  general  conclusions :  First,  that  such  a  system  will 
succeed  only  with  a  select  few  of  employers,  those  with  whom  social 
motives  have  an  extraordinary  influence  and  with  a  grade  of  skilled 
or  intelligent  labor.  Second,  such  a  system  is  of  some  importance  to 
society  from  a  statical  point  of  view,  but  little,  if  any  at  all,  from  that 
of  social  progress." 

The  first  and  the  third  of  these  three  sentences  betray  an  ambi- 
tious, so-called  "  sociological "  method  of  dealing  largely  with  facts, 
which  is  quite  out  of  place  in  a  careful,  inductive  study  of  social 
phenomena.  There  is  a  degree  of  truth  in  the  assertion  made  in  the 
second  sentence,  which  should  be  changed,  however,  so  as  to  read, 
"  will  succeed  best  with  a  select  few  of  employers." 

Mr.  Monroe  also  says :  '"  As  to  a  fundamental  principle,  the  large 
majority  are  of  the  opinion  that  such  a  plan  results  in  a  financial  loss 
to  the  employer,  he  being  recouped  if  at  all  in  non-computable  ways. 
Those  which  continue  the  plan  do  so,  not  as  a  matter  of  philanthropy, 
but  aa  a  matter  of  justice  if  not  of  business.  These  are  about  equally 
divided  in  their  opinion  as  to  the  direct  financial  benefit  of  the  plan 
to  the  firm."  The  value  of  the  generalization  in  the  first  sentence 
here  is  vitiated  by  the  inclusion  of  so  many  cases  in  the  article  which 
do  not  deserve  consideration,  if  for  no  other  reason  because  of  the 
brevity  of  the  trial,  the  majority  having  tried  the  system  "for  a 
period  of  from  two  to  three  years." 

The  conclusion  which  it  is  actually  safe  and  reasonable  to  draw 
from  American  experience  in  profit  sharing  is  that  in  numerous  in- 
stances the  plans  of  the  employers  made  no  provision  for  a  trial 
of  sufficient  length  to  insure  the  education  obviously  needed.  Va- 
rious mistakes  in  detail  and  several  external  causes,  not  connected 
with  profit  sharing  and  not  always  likely  to  be  encountered,  have 
been  responsible,  lai^ely,  for  several  important  failures  in  the  com- 
paratively small  number  of  instances  in  which,  after  a  wise,  long  and 
patient  trial,  the  system  has  been  abandoned  as  impracticable. 

Such  a  conclusion  seems  to  be  essentially  unaffected  by  the  devel- 
opments of  the  three  years  since  Mr.  Monroe  investigated  the  Ameri- 
can field.  Five  of  the  cases  reported  in  operation  in  1896  must  now 
be  subtracted.  John  Wanamaker  seems  to  have  been  included 
by  mistake.  The  Scott  and  Holston  Lumber  Company,  of  Duluth, 
Minn.,  paid  five  or  six  dividends  between  1888  and  1894 ;  C.  G.  Conn, 


388  APPENDIX 

of  Elkhart,  Ind.,  four  or  five  in  his  manufacture  of  band  instruments 
between  1891  and  1896 ;  and  the  Bowdoin  Paper  Manufacturing  Com- 
pany, of  Brunswick,  Me.,  and  the  Cumberland  Mills  in  the  same  in- 
dustry (S.  D.  Warren  &  Co.,  of  Boston),  initiated  profit-sharing  plans 
in  1890.  The  four  firms  just  named  were  more  or  less  affected  by 
hard  times,  and  have  not  resumed  the  system.  Five  cases  of  "  tem- 
porary abandonment  of  profit  sharing  due  to  commercial  depression," 
given  by  Mr.  Monroe  in  1896,  are  not  to  be  included  now  in  any  list  of 
profit-sharing  firms, — the  Page  Belting  Company,  Concord,  N.  H., 
which  has  failed  ;  the  Williamsport,  Penn.,  Iron  and  Nail  Company ; 
Ginn  &  Co.,  publishers,  Boston ;  Pomeroy  Brothers,  chemists,  New- 
ark, N.  J.,  —  all  believers  in  the  system ;  and  the  Golden  Pressed  and 
Fire  Brick  Company,  of  Denver,  Colo.,  which  paid  one  dividend  in 
1892. 

My  criticism  of  the  positions  assumed  by  Messrs.  Monroe  and  Schloss 
must  not  be  taken  to  indicate  lack  of  appreciation  of  their  valuable 
contributions  to  the  literature  of  profit  sharing.  I  have  deemed  it 
desirable  to  make  these  criticisms  here,  in  the  absence  of  any  printed 
reply  to  the  arguments  of  these  gentlemen,  and  to  point  out  defects 
in  their  discussion.  The  argument  for  profit  sharing  should  rest  much 
of  its  weight  now  upon  the  cases  where  the  trial  has  been  long  and 
the  policy  that  of  "  Thorough."  Where  profit  sharing  thus  applied 
has  failed  to  improve  the  workman's  position  essentially,  I  should  be 
one  of  the  last  to  oppose  the  substitution  for  it  of  some  other  form 
of  welfare-institution :  such  a  substitution  would  be  evidence  of  the 
good  faith  of  the  employer.  The  main  matter,  never  to  be  sacrificed 
to  any  theory,  is  the  actual  elevation  of  the  lot  of  the  employee. 


APPENDIX  IV 

BIBLIOGRAPHY 

This  list  inclades  the  principal  works  on  which  the  present  volume 
is  based,  bat  not  all  the  reports  and  pamphlets  issued  by  numerous 
houses  having  weKare-institutions.  The  largest  collection  of  this 
material  is  probably  to  be  found  in  the  library  of  the  Mus^e  Social  at 
Paris. 

Musterstatten  Personlicher  Fiirsorge  von  Arbeitgebem  fiir  ihre 
Gescliaftsangehorigen  von  Dr.  Jul.  Post,  Professor  an  der  Tech- 
nischen  Hochschide  in  Hannover.  Band  I. :  Die  Kinder  und  die  Ju- 
gendlichen  mit  44  AbbUdungen.  S.  IX.,  380.  Berlin.  Verlag  von 
Robert  Oppenheim,  1889.  Band  II. :  Die  Erwachsenen  Arbeiter. 
Von  Dr.  Jul.  Post,  Geh.  Reg.-  und  vortr.  Rath  im  Miniaterium  fiir 
Handel  und  Gewerbe  in  Berlin,  und  Dr.  H.  Albrecht  in  Gr.-Lichter- 
felde.  Mit  145  Abbildungen.  S.  VII.  I.  Theil.  Patriarchalischo 
Beziehungen  in  der  Grossindustrie ;  S.  172  :  II.  Theil.  Beschreibimg 
einzelner  Musterstatten,  S.  745.  Berlin.  Robert  Oppenheim  (Gus- 
tav  Schmidt),  1893.     (The  standard  German  treatise  on  the  subject.) 

Die  Wohlfahrtseinrichtungen  Berlins  und  seiner  Vororte.  Ein  Aus- 
kunftsbuch  herausgegeben  von  der  Auskunftsstelle  der  Deutschen 
Gesellschaft  fiir  ethische  Kultur.     2"  Aufl.     S.  427.     Berlin,  1899. 

Exposition  Universelle  Internationale  de  1889  &  Paris.  Rapports 
du  Jury  International.  Economie  Sociale.  Section  XIV.  {Institu- 
tions Patronales).  Rapport  de  M.  '&.  Cheysson,  Inspecteur  G^n^ral  des 
Ponts  et  Chauss^es,  Ancien  President  de  la  Soci^t^  d'Economie  So- 
ciale, Aneien  Directeur  du  Creusot,  p.  viii.  166.  Paris.  Impri- 
merie  Nationale,  1892.  (An  excellent  report,  with  appendixes  concern- 
ing eight  leading  instances.) 

Report  on  the  Social  Economy  Section  of  the  Universal  Interna- 
tional Exhibition  of  1889  at  Paris.  Prepared  by  Jides  Helbronner, 
Member  of  the  Royal  Labor  Commission.  Printed  by  order  of  Par- 
liament, pp.  Ixxxiii.,  659.  Ottawa.  Printed  by  Brown  Chamberlin, 
Printer  to  the  Queen's  Most  Excellent  Majesty.  (M.  Helbronner's 
report  contains  a  great  abundance  of  documentary  matter  and  of 
information  based  on  the  material  exhibited  in  the  Social  Economy 
Section,  of  which  it  gives  a  bibliography.  I  am  especially  indebted 
to  M.  Helbronner  for  information  (found  in  his  Section  XIV.  —  "  Em- 
ployers' Institutions  ")  concerning  those  cases  described  in  this  volume 
where  the  latest  figures  given  are  those  of  1888  or  1889.) 


390  APPENDIX 

Hubert  Brice :  Les  Institutions  Patronales.  Leur  Etat  Actuel  — 
Leur  Avenir.  Ouvrage  r^compens^  par  I'Academie  des  sciences 
morales  et  politiques,  pp.  vi.  340.  Paris :  Arthur  Kousseau.  1894. 
(The  latest  study  of  the  subject  in  French.) 

Hollandisehe  Musterstatten  Personlicher  Ftirsorge  von  Arbeit- 
gebem  f  iir  ihre  Geschaf  tsangehorigen.  Von  J.  C.  Eriagaard.  Druck- 
erei  Van  Marken,  Delft.     1896. 

Der  Arbeiterschutz.     Von  K.  Frankenstein. 

Pflichten  und  Aufgaben  der  Arbeitgeber  in  der  Arbeiterfrage. 
Von  Fr.  Hitze.     Koln,  1888. 

La  Participation  aux  B^n^fiees,  par  Emile  Waxweiler,  Chef  de 
Bureau  k  I'Office  du  Travail  de  Belgique,  pp.  320.  —  L'Assoeiation 
de  I'Ouvrier  aux  Profits  du  Patron  et  la  Participation  aux  B^n^fices, 
par  Paul  Bureau,  Professeur  Adjoint  k  la  Faculty  Libre  de  Droit  de 
Paris,  pp.  xix.  322.  —  La  Participation  aux  B^n^fiees,  !^tude  th^orique 
et  pratique,  par  Maurice  Vanlaer,  Avocat  au  Barreau  de  Lille, 
pp.  viii.  310.  —  Le  Metayage  et  la  Participation  aux  B^n^fices,  par 
Koger  Merlin,  Avocat,  pp.  xvi.  578.  (These  four  volumes  on  profit 
sharing  are  essays  offered  for  the  Comte  de  Chambrun  prize  in  1896, 
and  published  at  his  expense  by  Arthur  Rousseau.     Paris,  1898.) 

Le  Participationisme.  Par  A.  Coutivel.  Giard  et  Briftre.  Paris, 
1898. 

Le  Code  Ouvrier :  Louis  Andr^  et  L^on  Ginbourg.  Chevalier-Ma- 
rescq.     Paris. 

Lois  Social  es.  Recueil  des  Textes  de  la  Legislation  Sociale  de  la 
France.  J.  Chailley-Bert  et  A.  Fontaine.  L^on  Chailley.  Paris, 
1896. 

Etude  sur  la  Participation  aux  B^n^fices.  Par  M.  Mascarel.  A. 
Burdin  et  Cie.     Angers,  1894. 

Exposition  de  1889 :  Rapports  du  Jury  International  —  Economie 
Sociale. — Section  XL,  Rapport  de  M.  Charles  Robert.  Imprimerie 
Nationale.     Paris,  1889. 

Congrfes  International  de  la  Participation  aux  B^n^fices.  Compte 
Rendu.     Librairie  Chaix.     Paris,  1890. 

Guide  Pratique  pour  1' Application  de  la  Participation  aux  B^n4- 
fices.  Par  Albert  Trombert,  avec  une  Introduction  par  Charles  Ro- 
bert.    Librairie  Chaix.     Paris,  1895. 

La  Participation  aux  B^n^fices  et  les  Difficult^s  pr^sentes.  Par 
M.  Gibon.     Guillaumin.     Paris,  1892.     (Critical.) 

Le  M^canisme  de  la  Vie  Moderne.  Par  le  Vicomte  G.  d'Avenel. 
A.  Colin.  Paris,  1896.  (Chapitre  I.,  Les  Magasins  de  Nouveaut^s. 
Le  Bon  March^.) 

Fabrikantengliick !  Ein  Weg  der  dazn  f  iihren  Kann.  Von  Hein- 
rich  Freese.     S.  86.     Eisenach.     Verlag  von  M.  Wilckens,  1899. 

Die  Gewinnbeteiligung.    Von  R.  Einhauser.    Separatabzug  aus  der 


APPENDIX  391 

Zeitschrif t  f iir  die  gesamte  Staatswissenschaf t.  H.  Lanpp.  Tubingen, 
1898.     (Extremely  critical.) 

Die  Teilung  des  Geschaftsgewinns  zwischen  Untemehmern  und 
Angestellten.  Von  N.  P.  Oilman.  Umgearbeitet  und  ei^anzt  von 
Leopold  Katscher.     S.  XV.,  352.     Ed.  Wartig.     Leipzig,  1891. 

La  Participazione  dei  Lavoratori  al  Profitto  dell'  Impresa.  Vin- 
cenzo  Camanni.     Rome. 

La  Dottrina  del  Salario.  Adolfo  Musco.  Society  Anonima  Co- 
operativa  Napoli,  1898. 

Per  la  Pace  fra  Capitale  e  Lavoro.     Achille  Avogadro.     Como. 

La  Participazione  del  Profitto.  Carlo  Morpurgo.  Sordo-NutL 
Genoa. 

Le  Society  Cooperative  di  Produzione.  Di  Ugo  Rabbeno.  Fra- 
telli  Dumolard.     Milano,  1889. 

Methods  of  Industrial  Remuneration.  By  David  F.  Schloss. 
Third  edition,  revised  and  enlarged.  Williams  and  Norgate,  Lon- 
don ;  G.  P.  Putnam's  Sons,  New  York,  1898. 

Report  to  the  Board  of  Trade  on  Profit  Sharing  (by  J.  Lowry 
Whittle),  1891.  Report  by  Mr.  D.  F.  Schloss  on  Profit  Sharing,  1894. 
The  Annual  Reports  of  the  Labor  Department  of  the  Board  of 
Trade  since  1894  contain  tables  relating  to  the  status  of  profit  shar- 
ing.    Eyre  and  Spottiswoode,  London. 

Profit-Sharing  Precedents.  By  Henry  G.  Rawson.  Stevens  & 
Sons.     London,  1891. 

The  Distribution  of  the  Produce.  By  James  C.  Smith.  Kegan 
Paul,  Trench,  Triibner  &  Co.     London,  1892. 

Profit  Sharing  and  the  Labour  Question.  By  T.  W.  Bushill.  Me- 
thuen  &  Co.     London,  1893. 

Railways  and  their  Employees.  By  O.  D.  Ashley,  President  of 
the  Wabash  Railroad  Co.  The  Railway  Age  and  Northwesterner 
Railroader.     Chicago,  1895. 

Labor  Copartnership.  By  Henry  D.  Lloyd.  Harper  &  Brothers. 
New  York,  1898. 

Strikes  and  Social  Problems.  By  J.  Shield  Nicholson.  Ch.  HI. 
A.  &  C.  Black.     London,  1896. 

Report  on  Gain  Sharing  and  Certain  Other  Systems  of  Bonus  on 
Production.     By  D.  F.  Schloss.     1895. 

The  Adjustment  of  Wages  to  Efficiency.  Three  Papers  on  Gain 
Sharing,  the  Premium  Plan,  and  a  Piece-Rate  System.  By  H.  R. 
Towne,  F.  A.  Halsey,  and  F.  W.  Taylor.  Macmillan  Co.  New  York, 
1896. 

Socialism  and  the  American  Spirit.  By  N.  P.  Gilman  (Ch.  IX. 
"  Industrial  Partnership  ").     Houghton,  Mifflin  &  Co.     Boston,  1893. 

The  Bulletins  of  the  U.  S.  Department  of  Labor,  Nos.  3,  4,  5,  6,  7, 
contain  an  important  series  of  chapters  on  "  Industrial  Communities  " 


392  APPENDIX 

by  W.  P.  Willoughby,  of  the  Department.  Anzin,  Blanzy,  Essen, 
the  Familist^re  of  Guise,  the  Mariemont  and  Bascoup  Mines  and  the 
VieUle  Montage  Company  are  described  in  detail,  with  a  few  para- 
graphs about  Noisiel  and  Le  Creusot.  Bulletin  No.  8  gives  an  account 
of  "  Railway  Relief  Departments,"  by  Emory  R.  Johnson ;  No.  13, 
one  of  "  The  Anthracite  Mine  Laborers  "  by  G.  O.  Virtue  ;  in  No.  17, 
Mr.  Johnson  treats  of  "  Brotherhood  Relief  and  Insurance  of  Railway 
Employes ;  "  and  in  No.  20  is  a  general  survey  of  the  "  Condition  of 
Railway  Labor  in  Europe,"  by  W.  E.  Weyl. 

"  Der  Arbeiterfreund  "  of  Berlin,  quarterly,  and  "  Das  Volkswohl " 
of  Dresden,  the  "  Cooperative  News  "  of  Manchester,  England,  and 
"  Labour  Copartnership  "  of  London,  and  the  quarterly  "  Bulletin  "  of 
the  French  Participation  Society  g^ve  the  news  of  welfare-institu- 
tions and  profit  sharing,  and  articles  on  their  various  aspects.  "  Em- 
ployer and  Employed,"  a  small  quarterly  periodical,  was  published  in 
1892-96  for  the  purpose  of  forming  public  opinion  through  the  press 
of  the  country,  by  the  Association  for  the  Promotion  of  Profit  Shar- 
ing (President,  Carroll  D.  Wright;  Vice-president,  N.  O.  Nelson; 
Secretary,  N.  P.  Gilman). 

Among  m^azine  articles  describing  houses  mentioned  in  this  vol- 
ume are  the  following :  "  A  Spool  of  Thread  "  (Willimantic),  "  Scrib- 
ner's  Magazine,"  Sept.,  1878 ;  "  An  American  Palace  of  Delight " 
(Warner's  Seaside  Institute),  "The  American  Magazine,"  March, 
1888 ;  "  An  Industrial  Experiment  at  South  Manchester,"  "  Harper's 
Magazine,"  Nov.,  1872 ;  "  Pullman :  A  Social  Study,"  "  Harper's 
Magazine,"  Feb.,  1885;  "Hopedale  and  Its  Founder,"  "New  Eng- 
land Magazine,"  April,  1891.  Saltaire  is  described  in  "Harper's 
Magazine,"  voL  xliv.  p.  827 ;  and  the  Krupp  works  in  the  issue  for 
March,  1886. 

A  considerable  number  of  firms  having  welfare-institutions  publish 
annual  reports  or  pamphlets  describing  them.  Such  are  Fr.  Krupp 
(see  the  recent  work  by  F.  H.  G.  Miiller),  D.  Peters  &  Co.,  W.  Spindler, 
Villeroy  and  Boch,  the  Augsburg  Carding  and  Spinning  Mill,  the 
Harburg  Rubber  Comb  Company,  and  C.  Heyl,  in  Germany;  the 
Blanzy  and  Anzin  Mines  and  Seydoux  et  Cie,  in  France  ;  the  Vieille 
Montague  and  Mariemont  and  Bascoup  Mines,  in  Belgium  ;  the  Tang- 
yes,  Lever  Brothers,  Cassells  and  Hazell,  Watson  and  Viney  of  Eng- 
land ;  and  in  this  country  the  Pope  Company,  the  American  Watch 
Company,  the  National  Cash  Register  Company  (see  especially  "  A 
New  Era  in  Manufacturing  ")  and  the  H.  J.  Heinz  Company. 

For  the  more  important  works  on  profit  sharing  issued  before 
1889,  see  the  Bibliography  appended  to  "  Profit  Sharing  between 
Employer  and  Employee."  For  fuller  bibliographies,  see  the  works 
of  MM.  P.  Bureau  and  E.  Waxweiler,  named  above,  and  M.  Trom- 
bert's  "  Guide  Pratique." 


INDEX 


Abkand,  F.,  145. 

Accident  funds  and  insurance,  86,  107, 

111,   115,  116,  124,  133,  134,  138-141, 

144-148,  152-155,  157,  164. 
Acme  Sucker  Kod  Company,  234. 
Adams  House,  208. 
Adams,  Thomas,  and  Company,  190. 
Advance  department  in  Cash  Register 

works,  232. 
Advances  to  workmen,  146,  149,   153  et 

spq. 
AeltestencoUegiums,     see     Workmen's 

Councils. 
Aged,  Homes  for  the,  136,  142. 
Agneta  Park,  162,  164. 
Allen,  William,  55,  59. 
American  Waltham  Watch  Factory,  206, 

265. 
Ames,  Oakes,  236,  237. 
Ames,  Oliver,  and  Sons,  25,  235. 
Ames,  Oliver,  2d,  235,  236. 
Amsterdam,  168. 
Anzin,  mining  company  of,  130. 
Apprentices,  74,  83,   86,   166,  113,   124, 

144,  152, 167,  298e/«e?. 
Arbeiterausschuss,       see      Workmen's 

Councils. 
Arbeiterstiftung,  72. 
Ariieitervertretung     and     Arbeitervor- 

stand,  see  Worlnnen's  Councils. 
Arbitration,     compulsory,    21 ;      state 

boards  of,  22 ;  Mrs.  Lowell  on,  22  n. 
Aristocracy,  natural,   in  world    of  in- 
dustry, 3. 
Arlen,  92. 

Art  gallery  at  St.  Johnsbury,  238. 
Ashley,  O.  D.,  201,  n.  2. 
Athenaeum,  at  Joliet,  211,  212. 
Augsburg  Carding  and  Spinning  Mills, 

87. 
Avenel,  Vicomte  d',  337  n. 
Ayer,  J.  C,  Company,  293. 
Aylesbury,  183; 

Baccarat,  Olass  Works,  147. 

Bailie,  J.  B.,  27  n.,  298. 

Baille-Lemaire,  296 . 

Bakeries,  101,  .124, 128,  140,  160,  155  et 

seq. 
Baking   Society,    United    Oodperatiye, 

205. 
Balgamie,  R.,  189  n. 
Ballard  and  Ballard  Company,  349. 
Ballou,  Adin,  226,  228. 
Baltimore  and  Ohio  Railroad,  24, 272. 
Bank,  First  National,  Chicago,  294 ;  of 

Montreal,    294;  National  City,   New 

York,  295. 


Barrows,  S.  J.,  quoted,  264. 

Barrows,  W.  E.,  258-260. 

Bartlett,  J.  C,  279. 

Baths,  69,  78,  82,  87,  88,  92,  98,101,  108, 
110,  111,  113,  129,  134,  136,  142,  143, 
149,  151,  152,  155, 156,  167  et  seq. 

Bascoup  coal  mines,  173. 

Bausch  and  Lomb  Optical  Co.,  293. 

Beet-sugar  factory,  168. 

Belgian  mining  law,  171. 

Belgian  mutual  insurance  funds,  170. 

Belle  Sauvage  Press,  180. 

Benoist,  F.,  et  L.  Berthiot,  156. 

Bentham,  Jeremy,  55. 

Benton,  Joel,  262. 

Bemdorf  Theatre,  119. 

Bess^ges,  Mining  Company,  134. 

Bicycle  factory,  222,  325. 

Bicycles,  on  instalments,  101,  111. 

Bicycle  sheds  or  stables,  193,  233,  293. 

BiUiard-rooms,  87,  96,  108  et  seq. 

Birmingham,  191,  196. 

Birth  presents,  152,  169. 

Blackmar,  F.  W.,  310  n.,  332  n. 

Blanzy  Co.,  125  ;  report  on  dangers  of 
paternalism,  302,  363. 

Blin  et  Blin,  145. 

Blincoe,  Robert,  32. 

Bochum  Company  for  Mining  and  Cast 
Steel  Manufacture,  97. 

Bonus  Investment  Society,  205. 

Boots  and  shoes,  156. 

Boulange,  H.,  et  Cie,  152. 

Bourne,  Jonathan,  305. 

Bourne  MiUs,  28,  296,  304. 

Bournville,  191,  192. 

Braddock  library,  216. 

Brandts,  F.,  79. 

Brass  bands,  128, 134, 143, 151, 153,  165 
el  seq. 

Breweries,  107, 168,  176. 

Brice,  H.,  124. 

Bridgeport,  Conn.,  262. 

Brooklyn  Bridge  Railway,  281. 

Brooklyn  Rapid  Transit  Co.,  281. 

Brownell,  F.  A.,  292. 

Bryce,  James,  343. 

Bucyrus  Steam  Shovel  Company,  384. 

Bullock  Electric  Manufacturing  Com- 
pany, 291. 

Bureau,  Paul,  198  n. 

Cadbury  Brothers,  191. 

Caisse    Nationale    des    Retraites   pour 

la  Vieillesse,  121,  123,  132,  151. 
Caisse  Syndicate  d'Assurance  Mutuelle 

des  Forges  de  France,  140. 
Cambria  Steel  Company,  219. 


394 


INDEX 


Campello,  Mass.,  291. 

Canal  companies,  138,  159. 

Car  company,  239. 

Carlsberg  Breweries,  176. 

Carlyle,  Mrs.,  saying  of,  2. 

Carlyle,  Tliomas,  11. 

Carnegie,  Andrew,  quoted,  215,  216,  218 

and  note. 
Carnegie  Steel  Company,  22,  215. 
Carnoustie,  189. 
Cash  Register  Company,  National,  228 ; 

earlier  lack  of  success,  233  ;  2C5. 
Cassell  and  Company,  ISO. 
Cateau,  141. 
Cautionkasse,  114. 
Cliace,  Geo.  A.,  305,  306  n. 
Chagot,  Jules,  et  Cie,  125. 
Chaix,  Albans,  338. 
Chaix,  Maison,  153. 
Chambrun,  Comte  de,  338. 
Champagne,  Iron  Works  of,  138. 
Character,  Owen's  Essays   on  the  for- 
mation of,  55,  58  ;  institution  for  the 

formation  of,  56. 
Charlottenburg,  108. 
Chase,  A.  B.,  Company,  294. 
Chemists,  manufacturing,  293. 
Chen(5e,  171. 

Cheney  Brothers,  23,  254. 
Cheysson,  E.,  on  three  kinds  of  patron- 
age, 118,  119,  357  n.,358n. 
Chicago,  111.,  291,  292. 
Chicago.  Burlington  and  Quincy  R.  R., 

24,  277. 
Chicago  City  Railway,  22,  282. 
Chicago  Great   Western    Railway  Co., 

271. 
Chicago  Telephone  Company,  208. 
Children  in  English  factories,  30,  32. 
Chocolate  and  cocoa  works,    150,  169, 

191,  195. 
Choisy-le-Roi,  152. 
Chorlton  Twist  Company,  44. 
Churches  and  chapels,  129,  132, 135, 155, 

172  et  seq. 
Ciezskowski,  Comte  Augusts,  338  n. 
Cincinnati,  Ohio,  291,  292. 
Cincinnati  Milling  Machine  Co.,  234. 
Ciotat,  La,  158. 
City  Bank,  National,  295. 
Clarendon  Press,  188. 
Cleveland,  Ohio,  288. 
Cleveland-Cliffs  Iron  Company,  220. 
Clothes  rooms  and  closets,  82,  112,  118. 
Clothing  for  workpeople,  75,  110,   133, 

149,  192. 
Club-houses  and  club-rooms,  25,  74,  77, 

87,   96,  108,  113,  114,  115,  151,  167  et 

seq. 
Coal  mines,  89,  125,  130,  133,  134,  170, 

173,  284-286. 
Cockerill&Co.,  171. 
Coftee-kitchens,  100,  101,  111. 
Colbert,  146. 
Coleridge,  S.  T.,  43. 
Colin  et  Cie  (formerly  Godin),  337. 
Colin,  A.,  et  Cie,  152. 
Collective  insurance,  122. 
"  Colonels"  of  industry,  118, 119. 


Colonies,  67,  119. 

Columbus  (Oliio)  Gas  Company,  22,  349. 
Columbus  Traction  Company,  M9. 
Common  Property  Society,  162. 
Conciliation  committees,  21,  173  et  seq. 
Connecticut:  free  libraries  in  factories 

25. 
Cousommation,    Soci6t6s    Cooperatives 

de,  336. 
Conspiracy  and  Protection  of  Property 

Act,  318  n. 
Convalescent  homes,  184. 
Cooke-Taylor,  R.   Wliately :  quoted  or 

referred  to,  10  n.,  32. 
Cooperative  production,  331,  336,  346. 
Cooperative  and  cost  stores,  68,  92,  96, 

101, 105  n..  Ill,  113,  124,  127,  131,  139, 

143,   144,  150,  155,  157,  163,  167,  175 

et  seq. 
Copartnership,  Mr.  G.  Livesey  on,  323. 
Copenick,  85. 
Corset  makers,  262,  265. 
Cotton-mills,  40,  42,  46,  85,  87,  92,  97, 

115,  143-146,  191,  253,  304. 
Courrieres,  mining  company  of,  134. 
Courtivron,  145. 

Coxe  Brothers  and  Company,  286. 
Crane  Company,  244. 
Crane,  Walter,  212,  217. 
Crane,  W.  Murray,  246. 
Crane,  Zenas,  245. 

Creches,  96,  142,  144,  149,  152  et  seq. 
Creusot,  Le,  134. 
Crockery  makers,  152. 
Crystal  Palace  Gas  Company,  319. 
Cumberland  Mills,  Me.,  247. 
Cushman,  Ara,  Co.,  348,  384. 

Dairying  societies,  Irish,  345. 

Dale,  David,  commercial  prominence, 
44;  cold  reception  of  R.  Owen,  46; 
sells  New  Lanark  mills,  40;  friend- 
ship for  Owen,  46 ;  kindhearted  manu- 
facturer, 47  ;  discussions  with  Owen, 
53. 

Dale,  Miss,  meets  R.  Owen,  44  ;  their 
marriage,  46. 

Dalton,  John,  friend  of  R.  Owen,  43. 

Dalton,  Mass.,  244,  247. 

Dayton,  Ohio,  228,  230;  South  Park, 
231,  232,  234. 

Deaconesses,  99. 

Delaware  and  Hudson  Canal  Company, 
285. 

Delft  Glue  and  Gelatine  Works,  161. 

Department  stores,  291,  294,  337. 

Devonshire,  Duke  of,  323. 

Dining-halls,  74,  82,  87,  98, 101,  111,  117, 
124,  143,  150  et  seq. 

Dispensaries,  126,  136  et  seq. 

Dividend  to  labor,  an  indirect,  27 ;  a 
direct,  28 ;  at  Blanzy,  125 ;  306,  312, 
360. 

Dividend  to  labor,  same  on  savings  as 
to  shareliolders,  199  n. 

Dobbelman,  Herr,  109. 

Dock  and  wareliouse  company,  158. 

Dolfus-Mieg  et  Cie,  institutions,  115. 

Dolge,  Alfred,  24,  351  n. 


INDEX 


395 


DoIIfus,  F.  Engel,  115. 

Dollfus,  Jean,  115,  117. 

DoUfus,  M.,  156. 

Dombirn,  97. 

Draper  Company,  226. 

Drinks  for  workmen,  74,  75,  102,  106, 

107,  118,  156,  172  et  seq. 
Drinkwater,  Mr.,   of    Manchester,    40, 

41. 
Ducher,  H.,  156. 
Duyvis,  Jacob,  169. 
Dye  works,  108. 

Early  Closing  Associations,  203. 

Earthenware  and  mosaic  works,  83,  90. 

Eastman  Kodak  Co.,  291. 

Easton,  Penn.,  220. 

Easton,  North,  Mass.,  235. 

Economists  and  English  manufacturers, 
11. 

Edison  Electric  Illuminating  Co.,  267. 

Edwardsville,  111.,  324  etseq. 

Eight-hour  day,  103. 

Elberfeld,  75. 

Electrical  companies,  104, 267,  291. 

Electric  railways,  281,  282. 

Elgin  Watch  Company,  211. 

Elswick  Works,  198. 

Ely,  R.  T.,  211  n.,  242. 

Employer,  much  exposed  to  philanthro- 
pists, 1 ;  as  a  practical  philanthropist, 
2;  general  rationality  and  justice,  3; 
his  function  needs  humanizing,  3  ;  his 
ideals,  4 ;  his  function,  4  ;  and  work- 
man, 5 ;  his  need  of  ability  and  force 
of  character,  6 ;  his  responsibility,  6 ; 
his  morality  a  secondary  matter,  7 ; 
but  very  important,  8  ;  restrained  by 
law  and  public  opinion,  12  ;  external 
moralization,  13  ;  function  needs  mor- 
alizing, 13  ;  his  moral  responsibility, 
14  ;  ideals  presented  to  him,  15 ;  per- 
sonal alienation  from  employees,  15 ; 
importance  of  good-will,  16 ;  C.  D. 
Wright  on  his  trust,  17  ;  should  help 
solve  labor  problems,  18  ;  and  factory 
legislation,  19 ;  and  trade  -  unions, 
21 ;  and  arbitration,  21 ;  interest  in 
thrift,  22;  and  workmen-sharehold- 
ers, 22;  and  bonus  for  workers,  23; 
benefit  funds,  life  insurance,  pension 
plans,  24 ;  his  obligation  to  the  com- 
munity, 24 ;  should  begin  institutions 
early,  27 ;  should  live  near  employees, 
27,  147  ;  can  do  much  to  settle  labor 
problems,  29;  American,  and  profit- 
sharing,  348. 

Ems,  lead  and  silver  works  at,  101. 

Engineers  and  machinists,  106,  136,  166, 
169, 196, 198,  223,  226,  234,  343. 

£Spargne,  Soci^t^  d' Encouragement  k 
1',  Miihlhausen,  117. 

Eringaard,  J.  C,  165  n.,  169. 

Essen-on-Ruhr,  64  et  seq.,  73. 

Evening  schools,  124,  127  et  seq. 

Factory  legislation,  9,  11 ;  and  model 
employer,  19;  in  England,  34;  Owens 
twelve-hour  bill,  51. 


Factory  organization  at  Cash  Register 

works,  228. 
Factory  system  in  England,  30,  62. 
"  Fair,"  The,  291. 
Fairbanks,  E.  &  T.,  &  Co.,  25,  238. 
Fall  River,  Mass.,  304. 
Family  council,  152. 
Fanier,  M.,  156. 

Farrand-Votey  Organ  Company,  294. 
Fels  &  Co.,  288. 
Fette,  W.  Eliot,  383. 
Ferris  Brothers  Company,  264. 
Festivals,  114,  128,  139  et  seq. 
Fielden,  John,  quoted,  32  n. 
Fire  brigades,  85,  97,  129,  149  et  seq. 
Fire  insurance,  96,  98,  116,  146,  164  et 

seq. 
FUnt  and  Palmer,  38. 
Flour  mills,  349. 
Flower  shows,  191. 
Folembray,  149. 

Forges  de  France,  Comity  des,  140. 
Fox  Brothers,  343. 
France,  welfare-institutions  in,  63, 64  n., 

121  et  seq. 
Freese,  Heinrich,  102. 
French  State  tobacco  manufacture,  151. 
Fry  Brothers,  195. 
Fuel  supplied  to  workmen,  118,  127,  133 

134,  156  et  seq. 

Games  and  sports,  108, 133  et  seq. 
Gardens,  kitchen,  108,  147,  155, 178,  186 

el  seq. 
Gas  companies,  22, 156,  317,  319,  349. 
Gas  Workers'  Union,  318, 319. 
Gaskell,  P.,  quoted  or  referred  to,  10  n., 

33. 
Gastel  Beet  Sugar  Factory,  168. 
Germania  Shipbuilding  Company,  65. 
Germany,  welfare-institutions    in,    63 ; 

roll  of  honor  of  corporations  in,  120. 
Gibson,  Alexander,  250. 
Girls'  Institute,  179. 
Gladstone  Hall,  179. 
Glasgow,  205. 
Glass  works,  147, 149. 
Globe  Tobacco  Company,  383. 
Glue  and  gelatine  works,  161. 
Golden  Rule  Park  and  HaU,  235. 
Conner,  Professor,  18. 
Gouin  Construction  Company,  136. 
Gould,  E.  R.  L.,  quoted  or  referred  to, 

66  n.,    67,    77  n.,    151,    163  n.,     248, 

253  n.,  260  n.,  261. 
Granges,  Vosges,  146. 
Graphic,  The,  and  The  Daily  Graphic, 

187. 
Gratuities,  134. 
Great  Western  Railway,  201. 
Grey,  Earl,  343. 
Gun  clubs,  143  et  seq. 
Gymnastics,  85,  87,  92,  95,  108,  110, 114, 

115, 128, 139, 143, 155, 165  et  seq. 

Hackmen's  Company,  General,  of  Paris, 

157. 
Haines,  Jones  and  Cadbury  Company, 

382* 


396 


INDEX 


Hale,  Edward  E.,  332  n. 

Halls  and    rooms   for  social   purposes, 

92,  93, 127, 128,  151,  165,  167  et  seq. 
Hammerle,  F.  M.,97. 

Harburg  Rubber  Comb  Company,  98. 

Harfleur,  155. 

Harmonie  Lemaire,  303. 

Hartford,  Conn.,  222. 

Hazard,  Rowland,  251,  252. 

Hazard,  R.  G.,  251,  252. 

Hazell,  Watson  and  Viney,  182. 

Heinz,  H.  J.,  Company,  289. 

Hengelo,  166. 

Heyl  Brothers,  108. 

Heyl,  C,  110. 

Higginson,  T.  W.,  quoted,  250. 

Hodder,  Edwin,  quoted,  190. 

Hoffman  and  Billings  Company,  383. 

Holidays,  full  wages  for,  168. 

Homestead  library,  217;  athletic  club, 
218. 

Hopedale,  Mass.,  226. 

Horticulture,  85. 

Hosiery,  190. 

Hospitals,  70,  92, 126,  133,  134,  136,  137, 
140, 142,  151,  155,  159  et  seq. 

Houses  for  workmen,  23,  49,  73,  75,  84, 
87,  89,  90,  93,  90,  97,  98,  101,  106,  108, 
112,  117,  119,  123,  124,  125,  131,  134, 
135,  138,  139,  143,  144,  146,  147,  149, 
150,  153,  155,  156,  158,  162,  166,  168, 
171,  173  et  seq. 

Houten,  C.  J.  van,  and  Son,  169. 

Hovy,  W.,  168. 

Howerth,  I.  W.,310n. 

Howland  Mills,  23, 253. 

Hubin,  F.,  155. 

Huddersfield,  344. 

Hungarian  State  iron  works,  175  ;  rail- 
ways, 176. 

Button,  William,  in  silk  mill,  32. 

Ideals,  business,     of  the  employer,   4  ; 

moral,  14 ;   should  be  realizable,   15 ; 

Blanzy  Company  on,  129. 
niinois  Central  Railroad  Co.,  22,  269. 
Illinois  Steel  Works  Club,  25,  211. 
Industrial  schools,  73,  77,  82,  83,  89,  92, 

93,  95, 97,  98,  108,  109,  110,  111,  114, 
124,  127,  139,  148,  153,  155,  166,  174 
et  seq. 

Industrial  revolution,  30,  47. 

Infant  schools,  52,  56,  88,  92,  117,  127, 

140,  142, 144,  146,  148,  152, 156  et  seq. 
IngersoU-Sergeant  Drill  Company,  220. 
Institutes,  Aylesbury  and  Kirby  Street, 

186  ;  Oxford,  188  ;  Saltaire,  189. 
Insurance  of  workmen  in  France,  121 ; 

of  miners  in  Belgium,  169. 
Intermissions  from  work,  82,  231  et  seq. 
Iron  works,  112,  138-140,  171,  175,  220, 

337. 
Ishpeming,  220,  221. 
Ivorydale,  310. 

Jaluzot,  M.,  337  n. 
Janvier,  Pere  et  Fils  et  Cie,  147. 
Jersey  City,  N.  J.,  290. 
Johnstown,  Penn.,  219. 


Joliet,  HI.,  211. 

Jones,  S.  M.,  234. 

Jute  Spinning  and  Weaving  Factory,  94. 

Kay-Shuttleworth,  Sir  J.,  on  Man- 
chester operatives,  32. 

Kent,  Duke  of,  58. 

Kindergartens,  77,  82,  87,  98,  111,  114, 
imetseq. 

Kitchens,  59,  82,  92,  142. 

Knapp,  Stout  and  Co.  Company,  249. 

Kriebstein,  114. 

Krupp,  Fried.,  Essen  works,  64;  manu- 
factures, 65  ;  welfare-institutions,  66  ; 
housing  arrangements,  66 ;  "  colo- 
nies," 67;  stores,  68;  sanitary  con- 
ditions, 68  ;  baths,  69 ;  sick  fund,  09 ; 
hospital,  70 ;  pension  fund,  70 ;  life 
insurance,  72;  Arbeiterstiftung,  72; 
schools,  73 ;  industrial  training,  73  ; 
casino,  74 ;  dining-halls,  74 ;  savings 
75. 

Krupp,  F.  A.,  founds  pension  fund  for 
officials,  71  ;  sick  fund,  72  ;  Arbeiter- 
stiftung, 72 ;  Essen  memorial  fund, 
73 ;  gift  for  technical  education,  74. 

Kiibler  and  Niethammer,  114. 

Lace  making,  190. 

Lafarge  Lime  Kilns,  155. 

Laundries,  free,  88,  112,  151  et  seq. 

Lawrence,  Mass.,  253. 

Lead  and  silver  works,  101. 

Leather  works,  110. 

Leclaire,  Edme-Jean,  328,  337. 

Leclaire,  111.,  23,  323. 

Leclaire,  Maison,  336,  337. 

Lectures,  87,  112,  113,  115,  128,  151, 155 

et  seq. 
Lederlin,  A.,  143. 
Legrand,  J.  L.,  338  n. 
Lehigh  Coal  and  Navigation  Co.,  285. 
Lehigh  and  Wilkesbarre  Coal  Co.,  285. 
Lehigh  Valley  Coal  Co.,  285. 
Lehigh  Valley  Railroad,  278. 
Leipzig,  103. 
Lemaire,  A.,  297,  298. 
Lens  Mining  Co.,  134. 
Le  Play,  F.,  358. 
Levasseur,  E.,  225  n.,  358. 
Lever  Brothers,  Limited,  177. 
Libraries  for  workpeople,  24,  73,  77,  82, 

86,  89,  92,  96,  100,  101,  103,  107,  113, 

114,  119,  133,  143,  144,  151,  152,  153, 

164,  167  et  seq. 
Library  fee,  effect  of,  225  n. 
Li^vin  Mining  Company,  134. 
Life  insurance,  71,  111,  116,  126  et  seq. 
Lillers,  156. 
Lime-kiln,  155. 
Lisbon,  342. 

Literature  of  welfare-institutions,  120. 
Livesey,  Gteorge,  317. 
Livesey,  Thomas,  317. 
Lloyd,  Henry  D.,  205,  323  n.,  346  n. 
Loan  funds,  106,  111  et  seq. 
Lock  works  at  Neuilly,  153. 
Lodging  houses,  92,  97,  101,  144,  155  et 

seq. 


INDEX 


397 


London,  Bishop  of,  "  the  hand,"  18  n. 

Loudon,  Brighton  and  South  Coast  Rail- 
way Co.,  201. 

London  and  Northwestern  R.  B.  Co., 
199. 

LoriUard,  P.,  Co.,  290. 

Louisville,  Ky.,  349. 

Lowell  "  Offering,"  207  ;  corporations, 
253,  293. 

Lowell,  J.  R.,  on  free  libraries,  25. 

Lower-Rhenish-Westphalian  mines,  90. 

Lumber  firms,  249,  250. 

Lunches,  191,  192  et  seq. 

Lung,  Albert,  145. 

Machinery,  living,  300. 

Machinery  w^orks,  224,  226. 

Mallock,  W.  H.,  quoted  or  referred  to, 
3  n.,  7. 

Manchester,  South,  Conn.,  254 ;  schools, 
257. 

Manchester  operative,  daily  life,  32 ; 
physical  condition,  ZZ. 

Mans,  Le,  47. 

Manufacturers  and  pauper  children,  9; 
greed  and  cruelty  of  English,  10. 

Marcinelles  and  Couillet  Co.,  173. 

Mariemont  and  Bascoup  coal  mines,  173. 

Marienhiitte,  112. 

Marken,  J.  C.  van,  IGl ;  printing  com- 
pany, 162;  on  welfare-institutions, 
165  n. 

Marquette,  220. 

Marriage  of  workmen,  &4,  112. 

Marriage  presents,  152,  159. 

Marseilles  Dock  and  Warehouse  Com- 
pany, 158. 

Marshall,  Alfred,  343. 

Marysville,  N.  B.,  250. 

Mason,  Thomas,  and  Sons,  191. 

Massachusetts,  workmen's  stock  law, 
22. 

Maternity,  assistance  at,  117,  142,  149, 
151  et  seq. 

McGuffog,  James,  37. 

Medical  attendance,  92,  96, 107,  124, 126, 
133,  136,  142,  146-149,  151,  152,  154, 
156, 158,  159, 167,  174  et»eq. 

Menier,  Chocolat,  I.tO. 

Menomonie,  Wis.,  249. 

Merrimac  Manufacturing  Co.,  253. 

Mettlach,  90. 

Midland  R.  R.  Co.,  199. 

Military  service,  86,  91,  114,  133,  145, 
149,  155,  157  et  seq. 

Mining  companies,  97. 

Molijn,  M.,  340. 

Molinari,  O.  de,  on  paternalism,  362. 

Monitors,  silent,  at  New  Lanark,  51, 
57  n. ;  at  Cash  Register  works,  230. 

Monroe,  Paul,  347  u. ;  examination  of 
paper  in  "  American  Journal  of  Soci- 
ology," 381. 

Moutceau-les-Mines,  129,  133. 

Montrambert  Company,  mining,  134. 

Montreal,  Bank  of,  294. 

Moralization  of  human  relationships 
slow,  8 ;  but  sure,  11 ;  of  employer, 
131. 


Morin,    Fillot,    Ricois     et     Cie    (Bon 

Murche),  337. 
Morley,  Samuel,  190. 
Motives    for    welfare-institutions,    118, 

119. 
Moussey,  145. 
Muhlhausen,  115,  116. 
Mulhousienne,  Soci(5t6,  des    Cit^s    Ou- 

vrieres,  117. 
Mlinchen-Gladbuch,  79. 
Music  at  meals,  175. 
Musical  associations,  82,  84,  92,  97,  99, 

111,  113,  114,  115,  128,  133,  143,  144, 

148,  165,  174  et  seq. 
Mutual  aid  societies,  81,  124,  126,  131, 

131,  136,  139,  143,  144,  148,  152,  153, 

156,  157,  174  €t  seq. 

Naeyer  et  Cie,  340. 

Nelson,  N.  O.,  21,  23,  28;  Company,  323, 

332  n. 
Netherlands  Oil  Works,  161. 
Neviges,  75. 
Newark,  N.  J.,  264. 
New  Bedford,  Mass.,  253. 
Newcastle-upon-Tyne,  198. 
New  Lanark  Company,  54. 
New  Lanark  Mills  and  village,  34,  45- 

50,  55,  56,  58-61. 
New  Lanark  Twist  Company,  46. 
Newspapers,  187. 
Newspapers,  factory,  83,  165,  167,  168, 

289,  293  ;  free,  100,  112. 
New  York,  N.  Y.,  267,  269. 
New  York  Telephone  Company,  269. 
Nicholas,  Grand  Duke,  58. 
Noisiel,  150. 

North  and  East,  Society  of  the,  138. 
Northern  Railway  (France),  124. 
Norwalk,  Ohio,  294. 
Nottingham,  190,  203. 
Nunspeet,  Holland,  340. 

Ocean  Mail  Company,  157. 

Oil  works,  161. 

Omaha,  Nebraska,  294. 

Omnibus  Company,  General,  of  Paris. 
157. 

Opera-glasses,  297. 

Oporto,  342. 

Optical  goods,  293. 

Organ  makers,  294. 

Organization  of  welfare-institutions, 
128;  by  workmen,  130. 

OrltJans  railway,  122,  124. 

Oud-Gastel,  167. 

Owen,  Robert,  quoted  or  referred  to,  4, 
11,  29  ;  authorities  for  facts  of  his  life, 
34  n.,  49  n.,  59  n. ;  born  in  1771, 
34;  the  dish  of  flummery,  34  ;  educa- 
tion, 35;  passion  for  books,  35  ;  busi- 
ness life  begins,  36 ;  obtains  situation 
with  Mr.  McGuffog,  37 ;  returns  to 
London,  38  ;  goes  to  Manchester,  38 ; 
partnership  with  Jones,  39 ;  begins 
the  world  on  his  own  account,  40; 
manager  for  Mr.  Drinkwater,  40-44; 
his  creed,  36,  42;  business  ability,  43; 
friends,  43 ;    manager    for   Chorlton 


398 


INDEX 


Twist  Co.,  44 ;  meets  Miss  Dale,  44  ; 
first  visit  to  New  Lanark,  46 ;  with 
partners  buys  New  Lanark  Mills,  46  ; 
marries  Miss  Dale,  46  ;  reconstruction 
of  New  Lanark,  47  et  seq. ;  action  dur- 
ing the  embargo,  50  ;  "  silent  moni- 
tors," 51  ;  bill  for  regulating  hours  of 
work  in  mills  and  factories,  51 ;  faith 
in  education,  52  ;  cliange  of  partners, 
53  ;  dissolution  of  tlie  new  firm,  54  ; 
partnership  with  W.  Allen  and  others, 
55 ;  establishes  first  infant  sciiool  in 
Great  Britain,  56 ;  plans  for  the  im- 
provement of  his  work  people,  57 ; 
efforts  for  labor  legislation,  58 ;  hos- 
pitality at  New  Lanark,  58 ;  financial 
success,  59  ;  friction  with  W.  Allen, 
59 ;  retirement  from  business,  60 ; 
socialistic  views,  60  ;  failure  of  social- 
istic experiments,  60 ;  character  as 
an  employer,  62. 
Owen,  Robert,  the  elder,  34. 

Packard,  S.  E.,  and  Sons,  291. 

Paint  and  color  manufacture,  288. 

Painters  and  decorators,  336. 

Paper-box  makers,  291. 

Paper-making,  114,  244,  247,  337. 

Papeterie  Cooperative,  337. 

Parisian  Gas  Company,  156. 

Paris,  Lyons,  and  Mediterranean  K.  R. 
System,  122. 

Parks,  77,  82,  118  ei  seq. 

Participation  Society,  French,  338. 

Paternalism,  63,  64,  128,  130,  177,  206, 
329,  362. 

Patriarchal  employers,  79,  119. 

Patronage,  military,  patriarchal,  liberal, 
118. 

Patterson,  J.  H.  and  F.  J.,  228. 

Paturle-Lupin,  141,  142. 

Peace  Dale  Manufacturing  Co.,  251. 

Pennsylvania  Railroad,  24,  275 ;  lines 
west  of  Pittsburg,  277. 

Pennsylvania  Steel  Company,  220. 

Pension  funds,  French  employees  enjoy- 
ing, 159. 

Pension  funds,  69-71,  79,  86,  91,  94, 
99,  105,  105  n.,  106,  111,  115,  117,  118, 
121,  123,  126,  127,  132,  134,  136,  139, 
141,  143-146,  149,  151-159,  164,  166, 
168,  170,  172  et  seq. 

People's  Palace,  Carnoustie,  190. 

Peters,  D.,  and  Co.,  75. 

Peugeot  Freres,  Les  Fils  de,  139. 

Philadelphia,  Penn.,  287. 

Philadelphia  and  Reading  Coal  and  Iron 
Company,  284. 

Philadelphia  and  Reading  Railroad,  277. 

Photographic  supplies,  291,  292. 

Photographic  Studio,  Cooperative,  162. 

Pia  Azienda  Tessile,  341. 

Pianoforte  makers,  153,  294. 

Pickles  and  preserves,  289. 

Pidgeon,  Daniel,  quoted,  258. 

Pinet,  F.,  150. 

Pittsburg,  Penn.,  289. 

Plant -growing,  prizes  for,  191. 

Plant  system,  278. 


Pleyel,  Wolff  &  Co.,  153. 

Plumbers'  goods,  323. 

Poilly,  Fitz-James  et  Brigade,  Soci^t^ 
de,  149. 

Pope  Manufacturing  Company,  222. 

Port  Sunlight,  177. 

Portugal,  tobacco  industry,  341. 

Post,  J.,  03,111,112. 

Premiums,  80,  119,  141,  152,  156-158, 
167  et  seq. 

Printers  and  publishers,  103, 152,  153, 
1C2,  182,  292. 

Procter,  W.  C,  310  n. 

Procter  and  Gamble  Company,  28,  310. 

Profit  sliaring,  28,  29,  94,  103, 141,  144, 
147,  153,  156,  ICO,  ICSUTS,  204,  205  n., 
235,  249,  251,  296,  301,  302,  311,  315, 
316,  318,  322,  334  et  seq.  ;  and  waste, 
349  n.  ;  abandonment  of,  in  United 
States,  380 ;  need  of  trial  of  some 
length,  387. 

Provident  Funds,  102-107,  111,  116,  118, 
134,  136,  137,  141,  144-147,  156,  158, 
172,  173  el  seq. 

Prudence,  La,  120,  128. 

Prussian  government,  housing  em- 
ployees,  89. 

Pullman,  George  M.,  239,  242. 

Pullman,  111.,  239. 

Pullman's  Palace  Car  Company,  239, 243. 

Rabbeno,  Ugo,  33G  n. 

Railroads,  relief  funds,  24,  122-124, 171, 

176,  199-201,  269,  271,  272,  275,  277, 

278,  280. 
Railway  Department  of  the  T.  M.  C.  A., 

280. 
Reading-rooms,  89,  96,  112,  143  et  seq. 
Recreation,  99,  128,  153  et  seq. 
Redouly  et  Cie,  336. 
Refectories,  see  Dining-halls. 
Registers,  autographic,  229, 
Reineveld  machine  works,  169. 
Rents  to  workmen,  76,  91,  97,  125,  131, 

137,  150  et  seq. 
Remington  Sholes  Company,  292. 
Restaurants,  101,  105  n.,  107,  108,147, 

150,  157,  158,  167  et  seq. 
Rey,  M.,  171. 
Ringhoffer,  F.,  106. 
Ripon,  Marquis  of,  343. 
Robbins,  Mr.,  treasurer  Waltham  Watch 

Co.,  210,  211  ;  on  employer,  211. 
Robert,  Charles,  338. 
Roche  -  la  -  Motiere  -  et  -  Finniny,  mining 

company  of,  133. 
Rochester,  N.  Y.,  291,  292. 
Roesicke,R.,  107. 
Roesler,  Max,  83. 
Rogers,  Peet  &  Co.,  383. 
Ropewalk,  147. 
Ross  and  Duncan,  343,  344. 
Rossi  Woolen  Mills,  175. 
Rouen,  146. 
Rubber  comb  makers,  98. 

Saarbuck  mines,  89. 
Sabbath-keeping,  38. 
Safety  Corps,  107  et  seq. 


INDEX 


399 


Saint-Fr^res,  Messrs.,  146. 

Saltaire,  188. 

Sanborn,  F.  H.,  Company,  194. 

Sargant,  W.  L.,  quoted,  59  n. 

Satterfield,  Mr.,  of  Manchester,  38, 39. 

Saturday,  half  holiday,  204  n.,  314;  ex- 
cursions, 181. 

Sautter,  Lenionnler  et  Cle,  156. 

Saving,  difficulty  of,  271  n. 

Savings,  facilities  for,  75,  78,  81,  &4,  85, 
93,94,96,98,  102,  110,  111,  115,  117, 
129,  131,  la".,  138,  139,  141,  143,  145, 
146,  149,  151-1.">6,  164,  167,  172  et  seq. 

Scales  makers,  238. 

Bchiffbeck,  94. 

Schio,  175. 

Schlierbach  near  Wachtersbach,  83. 

Sclilittgen,  Rittmeister,  112. 

Schloss,  D.  P.,  342  n.,  345  n.,  346  n. 

Schneider  &  Co.,  Le  Creusot,  134. 

Schneider,  E.,  136. 

Schools  for  workpeople,  73,  94,  90,  102, 
111,  114,  127,  132,  134,  135,  l.SS-UO, 
140,  142-146,  148,  149.  151,  152,  155, 
165,  173  el  seq. 

Schultze-Gaevemitz,  Dr.  6.  von,  quoted, 
10  n.,  11. 

Scottish  Cooperative  Wholesale  Society, 
204. 

Seaside  Institute,  262. 

Self-help,  174. 

Services  for  the  dead,  148. 

Services  of  worship,  190,  192,  195,  197. 

Sewing-machines  for  workiug  women, 
92,  100  et  seq. 

Seydonx  et  Cie,  141. 

Shaftesbury,  Lord,  11. 

Shareholders,  employee,  269,  271  et  seq. 

Share  investment  societies,  182,  185. 

Shawraut  House,  208. 

Sherwin-Williains  Company,  288. 

Shieldhall,  near  Glasgow,  '^)4. 

Shovel  makers,  235. 

Sick  aid  and  funds,  69,  79,  86,  96,  98, 
99,  107,  111,  116,  118,  124,  134,  1.35, 
138,  139,  149,  151,  154,  155,  158,  164, 
167,  168,  171,  met  seq. 

Siegel-Cooper  Co.,  294. 

Siemens  establishments,  104. 

Silk-miUs,  2.>4,  341. 

Smieton,  J.,  and  Sons,  189. 

Soap  manufacturers,  178,  287,  310. 

Socialism,  60,  62,  63 ;  practical,  115  ; 
Catholic,  168;  360. 

Soda-ash,  153,  286. 

Solvay  et  Cie,  153. 

Solvay  Process  Company,  286. 

South  Metropolitan  Gas  Co.,  317. 

Sparrow's  Point,  220. 

Spear,  Miss,  44,  45. 

Bpindler,  W.,  85. 

Springfield  Foundry  Company,  382. 

St.  Dizier,  Canal  of,  138. 

St.  Johnsbury,  Vt.,  237. 

St.  Louis,  325 

St.  Louis  Shovel  Company,  384. 
St.  Remy-sur-Avre,  144. 
8t-bility  of  workmen,  129, 136,  137,  142, 
147,  149,  151,  173. 


Starch  works,  169. 

Steamers,  156,  157. 

Steelton,  Penn.,  220. 

Steel  works.  04,  97,  IZi,  211,  215-217, 
217,  219,  220. 

Stillwell-Bierce  and  Smith-Yaile  Com- 
pany, 234. 

Stirling,  W.  R.,  211. 

Stockholder,  workman,  313. 

Stork,  Gebruder  &  Co.,  166. 

Stout,  J.  H.,  250. 

Strikes,  136,  137,  243. 

Stumm,  Baron  von,  119. 

Suez  Canal  Company,  159. 

Suggestions  from  employees,  229,  293, 
294. 

Swinton,  John,  208  n.,  209. 

Syracuse,  N.  Y.,  286. 

Tainter,  Andrew,  249. 
Tangyes,  Limited,  196. 
Tapestry  Factory,  Royal,  341. 
Telephone  companies,  268,  269. 
Temperance    institutions,  80,    84,   144, 

197,  284. 
Ten  Brink,  M.  H.,  92. 
Ten-hour  day,  at  New  Lanark,  52. 
Teubner,  B.  G.,  103. 
Thaon  Blaiichisserie  et  Teinturerie,  142. 
Theatres,  87,  119,  175. 
ThUlot  et  Trougemont,  143. 
Thomson,  George,  21. 
Thomson,  Wm.,  and  Sons,  344,  345. 
Thread  makers,  258. 
Thrift,  not  a  fetich,  183  ;  fund,  Graphic, 

187. 
Tissus   de    Laine    des  Vosges,  Soci^t^ 

Anonyme  de,  143. 
Tobacco    and  cigar    manufacture,   151, 

169,  290,  341. 
Tocqueville,  A.  de,  quoted,  354. 
Toledo,  Ohio,  234. 
Trade-unions  and  employers,  21 ;  should 

become  incorporated  bodies,  21  ;  180, 

243  n.,  329. 
Transatlautique,   Compagnie   Gen^rale, 

158. 
Traun,  Dr.  H.,  98. 
Traveling  libraries,  128,  250. 
Tufts,  J.  W.,  ai7  n. 
Typewriter  factory,  292. 

Unemployed,  wages  for  the,  112. 
Union  Sportif,  127,  128. 
United  States  Printing  Co.,  292. 

Vacations,  86,  96,  99,  104,  107,  124. 

Valentignv,  139. 

Valk,  De  Gekroonde,  168. 

Vanderbilt,  Cornelius,  280. 

Vanlaer,  Maurice,  quoted,  339. 

Varangeville-Dombasle,  153. 

Varnishes,  340. 

Venetian  blind  factory,  102. 

Vieille  Montague,  Soci^t»5  de  la,  171 ;  on 

right  administration  of    institutions, 

364. 
Villeneuvette,  146. 
Villeroy  and  Boch,  90. 


400 


INDEX 


vineyard,  156. 
Vmers,  155. 
Vlekke,  J.  F.,  168. 

Waddington  Sons  Co.,  144. 

Waldschlosschen,  107. 

Walker,  Francis  A.,  quoted  or  referred 
to,  4,  7. 

Wallscourt,  Lord,  338  n. 

Walter-Seitz,  D.,  146. 

Waltham,  Mass.,  206. 

Waudsbeck,  98. 

War,  moral  forces  in,  359  n. 

Warner  Brothers,  262,  266. 

Warren,  8.  D.,  &  Co.,  23,  247. 

Watch  factories,  206,  211. 

Webb,  Sydney  and  Beatrice,  quoted, 
201  n.  1. 

Welfare-institutions,  26;  in  Germany, 
63;  cost  of,  at  Blanzy,  125  ;  at  Anzin, 
133  ;  at  Roche-la-Motiere-et-Firminy, 
133;  at  Montrambert,  134;  at  Bes- 
seges,  134 ;  at  Le  Creusot,  136  ;  at 
Cateau,  142  ;  at  Baccarat,  149  et  seq.; 
justify  expenditure,  151;  and  wages 
352  n. 

Wellington,  saying  of  Duke  of,  1. 

Werft  Conrad  machine  works,  169. 

Whitin  family,  223-225. 

Whitinsville,  223. 

Whitworth,  Sir  Joseph,  198  n. 

Wholesale  Society,  204. 


Widows'  and  orphans'  funds,  79,  99, 
105,  106,  111,  166,  168, 169  et  seq. 

Williraantic  Thread  Co.,  23,  258. 

Willink,  T.,  163. 

Willoughby,  W.  F.,  quoted  or  referred 
to,  "  Workingmen's  Insurance,"  121 
n.  2,  122,  140,  151  n.,  169  n.,  170  n., 
171,  280. 

Women's  work,  79, 127. 

Woolen  manufacturers,  75,  79, 141, 143, 
146, 175,  188,  251,  343,  344. 

Workman  director,  320,  321. 

Workman's  needs,  116. 

Workmen,  living  machinery,  4;  imper- 
fectly moralized,  13 ;  shareholders, 
22  ;  as  owners  of  homes,  23 ;  as  citi- 
zens, 23,  24. 

Workmen's  Councils,  78,  81,  83,  91, 102, 
104, 106, 112, 113, 165  et  seq. 

Worms,  Germany,  110. 

Worship,  services  of,  89. 

Wright,  Carroll  D.,  quoted  or  referred 
to,  17  n.,  355. 

Y.  M.  C.  A.,  Railway  Department  of 

the,  280. 
Yale  and  Towne  Company,  351  n. 
Yearoes,  Rev.  James,  204  n. 
Yeast  and  spirit  works,  161. 

Zinc  mines,  170. 
Zolyom-Brezo,  175. 


SECOND  EDITION 


Socialism  and  the  American  Spirit 

By  NICHOLAS    PAINE   OILMAN 


One  of  the  best  books  ever  written  on  the  subject  of  socialism.  The 
author's  philosophic  breadth  of  view,  scientific  temper,  and  ample  know- 
ledge of  the  facts  are  attested  by  every  chapter.  The  book  is  written  in  a 
clear  and  even  fascinating  style.  —  J.  G.  Schurman,  President  of  Cornell 
University. 

This  is  much  the  best  thing  which  this  author  has  written.  It  treats  an 
old  theme  in  a  thoroughly  original  way.  The  author  analyzes  socialism  not 
as  a  body  of  doctrines,  but  as  a  type  of  character.  He  is  not  so  much  con- 
cerned with  tracing  its  economic  results  as  its  psychological  conditions.  .  .  . 
All  must  welcome  the  kind  of  treatment  which  he  has  applied  to  the  subject 
as  a  whole.  —  A.  T.  Hadlev,  President  of  Yale  University. 

Mr.  Oilman  has  presented  most  admirably  the  American  answer  to  the 
questions  and  claims  of  socialism.  The  reviewer  is  in  little  danger  of  over- 
praising a  book  so  sane  in  its  judgments,  so  comprehensive  in  its  survey 
of  facts  and  tendencies,  so  carefully  written  as  this  book  is.  The  reader 
turns  its  pages  with  the  satisfaction  that  is  born  of  mental  contact  with 
full  and  accurate  information  and  unfailing  common  sense.  —  Prof.  F.  H. 

GiDDINGS. 

If  we  can  venture  to  compress  into  a  single  sentence  the  significance  of  a 
brilliantly  and  most  temperately  written  volume,  it  is  an  attempt  to  ration- 
alize social  discontent  in  America.  It  is  a  most  wholesome  book  in  its  moral 
tone,  contains  chapters  remarkable  for  analytical  power,  and  is  well  written 
and  thoroughly  digested  from  cover  to  cover.  —  The  Tribune,  New  York. 

This  volume  does  a  work  most  timely  and  necessary  for  American  readers 
in  examining  and  explaining  the  relation  of  socialism  to  the  spirit  which 
characterizes  the  American  people.  We  never  have  met  with  a  more  acute 
and  accurate  portrayal  of  this  spirit  and  of  the  mood  and  attitude  toward 
the  claims  and  the  phenomena  of  socialism  which  it  produces.  .  . .  The  great 
body  of  sober,  generous,  public-spirited  men  and  women  will  approve,  we 
have  no  doubt,  the  temper,  the  method,  and  the  practical  suggestions  in  de- 
tail which  Mr.  Oilman  has  illustrated  or  recommended  in  this  book.  —  The 
Congregationalist,  Boston. 

The  most  remarkable  point  about  this  book  is  its  readability.  It  easily 
holds  the  reader's  interest  to  the  end.  .  .  .  Those  who  really  understand  the 
American  spirit,  and  know  human  nature  thoroughly,  will  consider  this  vol- 
ume as  probably  the  most  valuable  contribution  thus  far  made  to  the  Amer- 
ican phase  of  the  subject.  —  The  Literary  World,  Boston. 

One  volume,  crown  8vo,  pp.  376,  $1.50 

Mailed  post-paid  on  receipt  of  the  price 

HOUGHTON,    MIFFLIN    AND    COMPANY 
4  Park  St.,  Boston;  11  East  17th  St.,  New  York 


ifourtl)  2Dl)ou£(anD» 

Profit  Sharing 

BETWEEN  EMPLOYER  AND  EMPLOYEE. 

A  Study  in  the  Evolution  of  the  Wages  System. 

BY   NICHOLAS   PAINE   GILMAN. 


"  A  clear  and  complete  account  of  all  the  experiments  in  Profit 
Sharing  which  have  been  made  in  Europe  and  America ;  the  eco- 
nomic principles  governing  such  arrangements  between  employer 
and  employee  are  correctly  stated ;  and  the  practical  difficulties  be- 
setting the  application  of  those  principles  are  fairly,  temperately, 
and  judiciously  discussed."  —  Francis  A.  Walker,  Pres.  Mass. 
Inst.  Technology. 

"  A  great  contribution  to  economic  literature.  .  .  .  The  clear  re- 
cital of  the  facts  relating  to  various  experiments  in  different  coun- 
tries, together  with  the  argument,  stamps  the  work  as  the  very  best 
that  has  appeared  in  the  English  language,  while  it  is  far  more  com- 
plete in  its  general  construction  than  any  that  has  appeared  in  any 
language."  —  Carroll  D.  Wright,  (7.  S.  Commissioner  of  Labor. 

"  This  book  can  be  recommended  without  modification,  whether 
to  teachers,  to  students,  or  to  general  readers."  —  E.  B.  Andrews, 
President  Brown  University. 

"  The  book  will  be  the  standard  work  on  the  subject  for  the  use 
of  both  students  and  profit-sharing  employers.  It  is  in  every  way 
worthy  of  such  distinction."  —  Political  Science  Quarterly,  New  York. 

"  Well  timed  and  well  executed,  and  thoroughly  trustworthy  in  its 
summary  of  facts,  and  the  most  complete  compendium  of  them  yet 
published.  ...  A  most  useful  and  trustworthy  contribution  to  the 
literature  of  the  Labor  Question."  —  T/te  Spectator,  London. 

"  An  excellent  book,  interesting  throughout,  exhibiting  a  thorough 
knowledge  of  economic  laws  and  the  workings  of  industrial  produc- 
tion and  commerce,  and  written  in  a  highly  commendable  spirit."  — 
The  Scotsman,  Edinburgh. 

"  A  sober,  faithful,  and  exhaustive  record  of  past  and  present  ex- 
periments in  profit  sharing.  .  .  .  We  heartily  recommend  the  book 
to  the  study  of  employers  and  workmen,  of  social  reformers  and 
economic  students ;  and  we  believe  that  it  wUl  be  recognized  as  the 
classical  work  on  the  subject." — "JourTial  of  the  Royal  Statistical 
Society,  London. 

One  volume,  crown  8vo,  460  pages,  $1.75. 

%*  Mailed,  post-paid,  on  receipt  of  the  price. 

HOUGHTON,   MIFFLIN   &   CO.,   Boston. 


BLHCTROTYPKD  AND  PRINTED 
BY  H.  O.   HOUGHTON  AND  CO. 

CAMBRIDGE,  MASS.,  U.  S.  A. 


&35 


University  of  California 

SOUTHERN  REGiONAL  LiBRARY  FACILITY 

405  Hiigard  Avenue,  Los  Angeles,  CA  90024-1388 

Return  this  material  to  the  library 

from  which  it  was  borrowed. 


UC  SOUTHERN  REGIONAL  UBRARY  FACILITY 


A     000  710  748     5 


\ 


>"■  '^a 


